AI is crashing SaaS: software costs plummeting as chip index falls 21% from high
nico_jeannen · x · 2026-10-30
nicojeannen argues the SaaS market has broken: AI-driven developer productivity makes software far cheaper to build (labor being the biggest cost), eroding moats and invalidating five-year valuation baselines. He also explains macro indicators — Fed rate, the 10-year yield as the risk-free anchor, and SOX as the AI-adjacent chip index — noting SOX is down 21.4% from its high and the 10-year yield at 5.05%.
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