FOX Business’ Lauren Simonetti has the details from Ashburn, Va., on “The Big Money Show.”
DOHA, Qatar – This week’s historic $1 trillion rout of U.S. software giants like Microsoft and Salesforce sent chills down Silicon Valley and around the world.
Talk to a growing customer base AI Unicorn founders and lead venture capitalists at Web Summit Qatar, many said the “Armageddon” software narrative was exaggerated – even as they acknowledge that AI valuations appear exaggerated.
The founder of $7 billion agentic AI unicorn Glean, Arvind Jain, said he doesn’t think AI will make software as a service obsolete.
GOOGLE PLANS TO SPEND BIG AS AI RACE WITH RIVALS INTENSIFIES
A computer screen displays an artificial intelligence image. (iStock)
“I think AI is a very powerful technology that people need to integrate,” he said, adding that the delivery of products and services “is going to continue,” asserting that integration is how software services will thrive in the future.
At the same time, Andrey Khusid, founder of the $17 billion decacorn Miro, said that “AI valuations are crazy and they will correct themselves,” but in his estimation, valuations “will normalize over the next couple of years.”
Tech investors also believe the AI bubble is deflating. Larry Li, founder of Amino Capital and a member of Forbes’ annual Midas List, said “it’s only a matter of time” as he sees the bubble – particularly for large companies – deflating.
| Teleprinter | Security | Last | Change | Change % |
|---|---|---|---|---|
| MSFT | MICROSOFT CORP. | 401.14 | +7.47 |
+1.90% |
| RCMP | SALESFORCE INC. | 191.37 | +1.45 |
+0.76% |
APPLE SEES BIGGEST SALES INCREASE IN 4 YEARS, POWERED BY “STUNNING” DEMAND FOR IPHONES
Investors and founders have compared the current situation to the dot-com era: most startups will fail, but those that survive will be the winning generations of the AI revolution. The prevailing view in Doha is that the boom has been more “responsible” than previous cycles because many companies generate real income – even if valuations can still correct.
IPO Market: Why AI Giants Might Wait
Another point of discussion in Doha was the IPO Marketamid reports that AI giants OpenAI and Anthropic are racing to get to market first to capture investor dollars eager to own a piece of the fastest-growing companies.
Khusid said he preferred to stay private, noting that the company had been profitable for years and that he believed it could operate more efficiently without outside pressure from the public market.
American flags on the floor of the New York Stock Exchange in New York on August 18, 2025. (Michael Nagle/Bloomberg via Getty Images)
NVIDIA CEO SAYS AI BOOM WILL CREATE SIX-FIGURE CONSTRUCTION JOBS
Jain said many AI companies also prefer to stay private longer. “Public procurement requires predictability,” he said, but “the market actually moves very quickly.”
Many of the world’s most valuable AI startups – including OpenAI and Anthropic – are still unprofitable, with reports indicating OpenAI is expected to lose $14 billion this year. This has not deterred investors from pouring billions into the sector. According to Forbes, more than $340 billion of cash was invested in global startups in 2025 – with more than 65% of that capital invested in AI companies.
“In relation to AI”: the new benchmark in fundraising
Although AI companies still have abundant access to cash, other startups say the funding market is tougher. Speaking on a panel hosted by FOX Business, Yuno founder Juan Pablo Ortega – who also founded Latin American unicorn Rappi – said non-AI startups were compared to AI companies experiencing extreme growth.
CLICK HERE TO GET FOX BUSINESS ON THE GO
“You’re being compared to AI companies that are growing 1,000% year over year and doing things that aren’t possible for the rest of us,” he said.
Artificial intelligence logo on a printed circuit board. (iStock)
US-China AI race: innovation versus scale
Another hot topic: the AI race between the United States and China and which country is ahead in terms of technology. Li, of Amino Capital, said the United States is ahead in innovation, but China is ahead in terms of scaling, China has an advantage thanks to its supply chain and production capacity as well as a higher number of AI engineers.
When asked whether the US or China would “win,” most founders and investors said there was room for both – with growth in closed models like OpenAI and open models, including those developed in China.
Despite the stock market turbulence this week, the Dow Jones managed to cross the historic level of 50,000, highlighting the continued exuberance around the AI race – even as many in Doha expect a reset in valuations.