Private Equity Giant Thoma Bravo Says 'SaaSpocalypse' Is Over, Sees AI as Major Tailwind for Software
Thoma Bravo, a major private equity investor managing nearly $200 billion in assets, declared that fears of a software industry collapse triggered by advanced AI tools have subsided. The firm's portfolio companies are experiencing strong growth, with about 50% of new revenue coming from AI-related products. Software stocks have rebounded significantly since February, with the sector now positioned to benefit from AI integration rather than be disrupted by it.
Thoma Bravo founder Orlando Bravo stated that the "SaaSpocalypse"—investor panic sparked in February when Anthropic's advanced Claude AI tools raised concerns about software company obsolescence—has ended. The firm's portfolio of software and technology-enabled services companies, generating approximately $35 billion in combined revenue, is largely thriving due to AI adoption. Bravo emphasized that software companies are evolving by integrating AI capabilities rather than remaining static, with roughly half of new revenue streams coming from AI and agentic solutions. Software stocks have staged a notable recovery, with the iShares Expanded Tech-Software Sector ETF gaining 21% in May alone. However, Bravo acknowledged that the market remains in a discovery phase, with ongoing questions about governance, cybersecurity, and return on investment from newer AI tools creating some systemic pressure.
What different sources said
- CNBCCenter
The 'SaaSpocalypse' is over, says private equity giant Thoma Bravo. Here's why it sees an AI boom for software
- The EconomistCenter
Fear of the SaaSpocalypse is tormenting techland
Related
Coalition of State Attorneys General Opens Sweeping Investigation into OpenAI
A coalition of U.S. state attorneys general has launched a sweeping investigation into OpenAI, serving the company with a subpoena on June 12 seeking documents on its activities, user data handling, and impact on vulnerable populations. The probe, led by New York's attorney general, comes as OpenAI faces mounting legal pressure including a Florida lawsuit and wrongful death suits tied to ChatGPT. The investigation adds significant regulatory scrutiny to OpenAI as it prepares for a potential IPO valued at up to $1 trillion.
Destiny 2 Ends as Marathon Becomes Bungie and Sony's Last Live-Service Hope
Destiny 2's final content update, Monument of Triumph, drove a spike to 167,867 peak concurrent Steam players on June 9, while Bungie's extraction shooter Marathon continued declining toward all-time lows. The contrast has reignited fan debate over whether Bungie and Sony prematurely abandoned Destiny 2 in favor of Marathon. The situation places enormous pressure on Marathon to succeed, as it is now Sony's highest-profile live-service game and the primary vehicle for Bungie's survival.
Over 400 Arch Linux AUR Packages Compromised in Large-Scale Malware Campaign
Attackers hijacked more than 400 packages in the Arch Linux User Repository (AUR) by adopting abandoned projects and rewriting their build scripts to install credential-stealing malware. The campaign, tracked by Sonatype as 'Atomic Arch,' deployed a Rust-based infostealer capable of harvesting browser sessions, SSH keys, developer tokens, and cloud credentials, with an optional eBPF rootkit to conceal itself when run with root privileges. Arch Linux maintainers are actively removing malicious commits and banning affected accounts, but users who built any AUR package on or after June 11 are advised to treat their systems as potentially compromised and rotate all sensitive credentials.