SaaS Market Shakeup: AI Models Pressure Software Valuations as Earnings Reports Reveal Mixed Signals

Concerns that AI coding models like OpenAI's Codex and Anthropic's Claude Code are eroding software company economics intensified this week. Airtable was acquired for less than $1.3 billion, down from a $12 billion valuation in 2021, while HubSpot, Datadog and Figma plummeted on earnings reports. However, sentiment shifted by week's end as Twilio and Atlassian surged over 20% on strong quarterly results, suggesting the market may be overestimating AI's threat to established software categories. RBC's Matt Hedberg noted that some software segments face genuine pressure from AI agents, while others are well-positioned to adapt. Software stocks remain under pressure longer-term, with venture capital favoring AI companies—86% of private deal value in the first half of 2026 went to AI firms.