① Bridgewater Associates pointed out that the market has begun pricing in risks faced by software companies, and enterprises must either evolve alongside AI or face the fate of being disrupted; ② Bridgewater warned that geopolitical turmoil will continue to disrupt stock and commodity markets, with U.S. actions in regions such as Venezuela, Greenland, and Iran potentially accelerating global competition for weapons and resources.
Cailian Press, April 28 (Edited by Niu Zhanlin) The co-chief investment officers of Bridgewater Associates stated that as the rapid rise of artificial intelligence (AI) reshapes the entire software industry, the shadow of an 'existential threat' now looms over these traditional companies.
In a client report released on Monday, the firm noted: "The launch of the latest version of Claude Code signifies that an emerging competitor now poses an existential threat to large enterprises, reminiscent of the impact$Amazon (AMZN.US)$on Barnes & Noble in the past."
Concerns that newly released AI models could disrupt traditional software companies have shaken the entire industry, triggering a sell-off in software stocks. The S&P 500 Software & Services Index has plummeted approximately 17% year-to-date.
The wave of layoffs is also intensifying, with companies across large technology firms and financial services cutting thousands of jobs, citing cost savings achieved through the deployment of AI.
"The market has begun pricing in the risks faced by application software companies; enterprises must either evolve alongside AI or face the fate of being disrupted," wrote Bob Prince, Greg Jensen, and Karen Karniol-Tambour, co-chief investment officers of the investment firm.
Looking back at the 1990s, although some physical bookstores closed their stores, many bookstores successfully transformed by expanding online operations, focusing on in-store experiences, and curating book selections.
Notably, in addition to disrupting the business models of software companies, AI firms have also launched a talent acquisition battle against traditional software companies.
According to informed sources, executives from several large software companies are being aggressively recruited by AI giants, with these firms actively competing for talent with experience in sales and business development.
From$Salesforce (CRM.US)$、$Snowflake (SNOW.US)$and$Datadog (DDOG.US)$Executives from Snowflake have recently been recruited by OpenAI and Anthropic with attractive compensation packages and opportunities to bring existing enterprise client relationships into these AI firms.
One of OpenAI's most notable hires from the software industry is Denise Dresser, who previously served as CEO of Slack, a communication platform under $Salesforce (CRM.US)$ . Similarly, Anthropic has also recruited talent from Salesforce.
Meanwhile, structural changes in the technology workforce are prompting IT professionals to consider where they can create value and ride the latest technological wave as more companies invest heavily in AI.
Geopolitical risks
Bridgewater Associates also warned that persistent geopolitical turmoil will continue to disrupt stock and commodity markets.
The chief investment officers at Bridgewater stated that U.S. actions in regions such as Venezuela, Greenland, and Iran could accelerate fractures within the U.S.-led alliance system, driving a faster global race for weapons and resources.
Shipping activity through the Strait of Hormuz, a critical global energy corridor, remains subdued as efforts to de-escalate tensions with Iran have stalled.
This conflict has roiled global markets, leading to shortages of commodities and raising concerns about rising inflation.
The report states: "The trajectory of the war in the Middle East remains highly uncertain, but the destruction already caused is severe enough, and the process of restoring shipping will be very slow, meaning the commodity shock will persist for some time."
Editor/Rocky