Databricks CEO: Replacing Core Systems with AI is Stupid

SumitGup · x · 2026-07-18

Databricks CEO Ali Ghodsi stated in a recent interview that while AI has driven the cost of writing software down to almost zero, using it to directly replace existing enterprise core systems (like CRM) is "stupid."

He noted that AI-empowered development is a powerful new weapon, allowing everyone, including Databricks itself, to produce software at extremely low costs. However, when asked if he had used this weapon to replace the company's internal foundational software spend, he answered no, believing blind replacement to be unwise.

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