'SaaSpocalypse' Update: Gene Munster Echoes Jensen Huang, Predicts AI Agents Will Redefine Software

On Thursday, Deepwater Asset Management's managing partner Gene Munster said that comments from Nvidia Corp. (NASDAQ:NVDA) Jensen Huang signal a major transformation in how software companies may operate.

Munster Cites Shift In Software Economics

In an X post, Munster said that comments from Huang at the Morgan Stanley Technology, Media and Telecom Conference on Wednesday signaled a major shift in the software industry's future.

He highlighted Huang's view that software will look very different in the years ahead and that the industry could become significantly larger as companies transition away from traditional seat-based subscription models toward renting AI agents and specialized tokens.

"My take: Seat-based models will face pressure as the knowledge workforce contracts," Munster wrote. "Renting agents, or usage-based software companies, will flourish."

Market Reaction And Industry Concerns

The comments came amid volatility in the sector.

Shares of companies including Salesforce Inc. (NYSE:CRM), Atlassian Corp. (NASDAQ:TEAM), Zscaler, Inc. (NASDAQ:ZS) and Workday, Inc. (NASDAQ:WDAY) and cybersecurity firms such as CrowdStrike (NASDAQ:CRWD), Cloudflare (NYSE:NET), Gitlab (NASDAQ:GTLB) and Okta (NASDAQ:OKTA) faced pressure during last month's sell-off.

Meanwhile, firms like Anthropic and OpenAI continue advancing AI tools that some analysts say could disrupt traditional software functions.

Still, some institutions, including HSBC, argue AI will enhance rather than replace the software industry.

Huang Says Nvidia's OpenAI, Anthropic Bets May End After IPOs

At the conference in San Francisco, Huang also said Nvidia's investments in OpenAI and Anthropic are likely to be its final ones in both firms.

He noted that once they complete their anticipated public offerings later this year, the opportunity to invest will no longer be available.

Last week, Nvidia completed an investment as part of OpenAI's $110 billion funding round, which totaled $30 billion, falling significantly below the company's previously announced commitment.

Nvidia has also invested $10 billion in OpenAI rival Anthropic.

Price Action: NVIDIA shares closed at $183.34, up 0.16% and slipped to $182.10 in after-hours trading, according to Benzinga Pro.

Benzinga's Edge Stock Rankings indicate that NVDA is trending downward in the short and medium term, but continues to show a long-term uptrend, with its growth score in the 98th percentile.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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