The AI Decoupling
The tech economy has experienced a significant split between AI and traditional software sectors since May 2025. This decoupling has led to a sell-off in SaaS and cloud services while AI labs have thrived, creating two distinct ecosystems. The article explores the underlying economic changes driven by advancements in AI technologies and their implications for the future of software and product definitions.
- ▪The AI/software decoupling began in May 2025 and became evident in early 2026.
- ▪SaaS and cloud services faced the largest sell-off since the pandemic, while AI infrastructure saw significant growth.
- ▪The article discusses how advancements in AI models have redefined traditional software economics.
Opening excerpt (first ~120 words) tap to expand
The AI DecouplingPierre-Carl Langlais, May 24, 2026 It started exactly one year ago: in May 2025, the tech economy split into software and AI. The SaaS compounded index from Bessemer vs. general Nasdaq The AI/software decoupling went unnoticed for months, save for early signs of structural strain. The market finally came to a full realization in early 2026: SaaS and cloud services experienced the largest sell-off since the start of the pandemic, while AI labs and associated infrastructure soared. There are now two completely disconnected ecosystems, with different growth perspectives, valuation multiples, investing networks, talent attractiveness. In short, the AI economy decoupled from the tech economy that gave it birth.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at Vintagedata.
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