FOX Business’ Lauren Simonetti has the details on the “Big Money Show” in Asburn, Virginia.
Doha, Qatar – This week, the historic $1 trillion losses at US software giants like Microsoft and Salesforce sent chills across Silicon Valley and around the world.
Many of the founders of fast-growing AI unicorns and top venture investors who spoke at Web Summit Qatar acknowledged that AI’s valuations seemed inflated, but argued that the story of a software “Armageddon” was exaggerated.
Arvind Jain, founder of $7 billion agent AI unicorn Glean, said he doesn’t think AI will make software-as-a-service obsolete.
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Artificial intelligence images are displayed on the computer screen. (St. Petersburg)
“I think AI is a very powerful technology that humans need to incorporate,” he said, adding that product and service delivery “will all continue,” arguing that integration is how software services will thrive in the future.
Meanwhile, Andrei Kushid, founder of $17 billion decacorn Miro, said AI’s “valuations are crazy and will be corrected,” but he estimates valuations will “normalize over the next two years.”
Technology investors also believe the AI bubble is deflating. Larry Lee, founder of Amino Capital and member of Forbes magazine’s annual Midas List, said he sees the bubble, especially for large companies, as deflating: “It’s just a matter of time.”
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| MSFT | Microsoft Corporation | 401.14 | +7.47 |
+1.90% |
| CRM | Salesforce Co., Ltd. | 191.37 | +1.45 |
+0.76% |
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Investors and founders alike compared this to the dot-com era and said that while most startups will fail, those that survive will be the generational winners of the AI revolution. In Doha, the prevailing view is that the boom is more “responsible” than previous cycles, as many companies are making real profits, even if valuations may still be revised.
IPO market: Why AI giants are waiting
Another point of contention in Doha was the IPO market, which came amid reports that AI giants OpenAI and Anthropic are racing to be the first to enter the market to scoop up the money of eager investors looking to get a piece of a fast-growing company.
Kushid said he prefers to remain private, noting that the company has been profitable for many years and believes it can operate more efficiently without external pressure from public markets.
An American flag is raised on the floor of the New York Stock Exchange on August 18, 2025 in New York. (Michael Nagle/Bloomberg via Getty Images)
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Jain said many AI companies also prefer to remain private for longer. “Public markets require predictability, but the reality is that markets are changing very rapidly,” he said.
Many of the world’s most valuable AI startups, including OpenAI and Anthropic, remain unprofitable, with some reports saying OpenAI is on track to lose $14 billion this year. That hasn’t deterred investors from pouring billions into the sector. According to Forbes, more than $340 billion in cash went after global startups in 2025, with more than 65% of that capital invested in AI companies.
“Comparison with AI”: A new funding benchmark
While AI companies still have access to plentiful capital, other startups say the funding market is tougher. In a panel discussion moderated by FOX Business, Yuno founder Juan Pablo Ortega, who is also the founder of Latin American unicorn Rappi, said non-AI startups are being benchmarked against AI companies that are growing at an abnormal rate.
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“You’re going to be compared to AI companies that are growing 1,000% year over year and doing things that other companies can’t do,” he said.
Artificial intelligence logo on circuit board. (St. Petersburg)
The AI race between the US and China: Innovation and scale
Another hot topic is the AI race between the US and China and which country is ahead in the technology. Amino Capital’s Lee argued that while the United States is ahead in innovation, China is ahead in scale, and that China has an advantage in supply chains, production capacity, and a larger number of AI engineers.
When asked whether the US or China will “win”, most founders and investors said there is room for both, with closed models like OpenAI and the growth of open models, including models developed in China.
Despite this week’s stock market turmoil, the Dow Jones Industrial Average still managed to break above the historic $50,000 level, confirming that the AI race continues to be hot, even as many in Doha predict a valuation reset.
