In a recent LinkedIn post, Linas Beliūnas challenges the prevailing market sentiment that Artificial Intelligence (AI) spells the demise of software companies. Beliūnas argues that Wall Street is misinterpreting the impact of AI, leading to an inaccurate valuation of software stocks.
Beliūnas highlights the perspective of NVIDIA co-founder and CEO Jensen Huang, who recently stated that the market is viewing the AI revolution incorrectly. According to Beliūnas, quoting Huang:
“The notion that AI is somehow going to replace software companies is the most illogical thing in the world and time will prove itself”.
AI as an Enhancer, Not a Replacement
Linas Beliūnas elaborates on Huang’s view, explaining that AI functions as a tool that utilizes existing software rather than replacing it. He likens the current landscape to AI agents acting as new workers, with Software-as-a-Service (SaaS) platforms serving as the essential ‘factory floor’.
As Beliūnas points out, these enterprise AI agents are not built in a vacuum. They fundamentally rely on established infrastructure:
- APIs
- Databases
- Security layers
He emphasizes that AI agents do not necessitate a complete rebuild of existing platforms like Salesforce. Instead, they integrate with and leverage these tools.
Evidence of SaaS Resilience and Growth
To support his thesis, Beliūnas cites the continued growth of companies like ServiceNow, which is reportedly expanding at over 20% while actively embedding AI capabilities across its product suite. This demonstrates that established SaaS providers are adapting to and benefiting from AI integration.
Furthermore, Beliūnas notes the substantial investments being made by hyperscalers in their infrastructure, largely driven by AI workloads. He states:
“Hyperscalers are pouring ~$175-185B in capex this year, largely for AI workloads.”
This significant capital expenditure underscores the increasing demand for the underlying infrastructure that supports AI, which in turn benefits the software and cloud services that run on it.
Increased Demand Driven by AI Adoption
Beliūnas refers to research, such as a 2024 NBER paper, which suggests that AI actually increases software output. This heightened output, in turn, drives greater demand for computing infrastructure. The core argument is that more code, more automation, and more AI agents translate directly into a greater need for infrastructure, robust compliance measures, and seamless integration solutions.
While acknowledging that companies with lower competitive moats in the SaaS market might face pressure, and that pricing models may shift towards usage-based structures, Beliūnas remains optimistic about the overall sector. He argues:
“More code, more automation, more agents = more infrastructure, more compliance, more integration.”
The Real ‘Death’ is the Middleman
Linas Beliūnas concludes that the market’s current focus on the potential ‘death of SaaS’ is misplaced. Instead, he suggests that AI is acting as a powerful sorting mechanism, identifying and potentially disrupting less essential intermediaries in the value chain.
In his view, the true market shift that investors should be pricing is not the end of software companies, but the obsolescence of inefficient middlemen. As Beliūnas summarizes his key takeaway:
“Wall Street is pricing the death of SaaS when it should be pricing the death of the middleman.”
Ultimately, Beliūnas frames AI not as a disruptor that eliminates software, but as an evolution that enhances its utility and drives demand for the underlying infrastructure and platforms that power it.
📝 About This Content
This article is based on insights shared by Linas Beliūnas on LinkedIn.
📅 Originally posted on February 10, 2026 | View original post on LinkedIn →