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SaaS companies are getting crushed right now. Let's look at 7 new AI updates from the past few weeks that help explain why...

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Recent AI developments are threatening the traditional SaaS business model as major software companies lost $1 trillion in market cap. Seven key AI releases demonstrate this shift: OpenAI's Codex app and 5.3 model, Claude's Opus 4.6, Alibaba's Qwen 3 Coder Next, ZAI's GLM5, Minimax M2.5, GitHub Agent HQ, and Waymo's world model. These tools enable AI agents to replace multiple human seats, offer open-weight alternatives to expensive subscriptions, and automate entire development workflows. The core thesis: when AI intelligence becomes abundant and cheap, the per-seat pricing model that drives SaaS profit margins becomes obsolete.

7 AI updates breaking the SaaS business model...

I am here waiting for all the AI crap to fall apart so people can again start using their brain.

You ain’t seen nothin’ yet!
<img src="https://media.tenor.com/aJRM7LmiLUYAAAAC/sas-evil.gif" alt="GIF">

I asked this question to myself three years ago, I can’t believe big tech did not see this coming. If AI becomes what they hope it will become as a company what do I need SaaS for? If AI can create any software tool I need what do I need any cloud based software for? The secret sauce will be on-prem self hosting AI, with the infrastructure needed to keep cost ridiculously low.

A different approach to education, development, and business is needed. With the advent of AI, these areas will have to transform.

Man, Anthropic’s Announcement that Claude can now handle COBOL made IBM lose 40B in a single day…