AI anxiety batters software execs, costing them $62B: report | Latest Tech News
Some of the wealthiest software executives in the US have reportedly misplaced a mixed $62 billion this yr as fears grow that artificial intelligence may intestine the industry’s most profitable companies.
Eight of the ten largest wealth drops so far in 2026 have been among billionaires who constructed their fortunes in software, according to Bloomberg News.
The trio who based AppLovin, the cellular promoting and technology platform, each misplaced around 30% of their internet value so far this yr, with the stock falling by almost a third.
Oracle founder Larry Ellison has misplaced almost $40 billion this yr as software shares slide. Getty Images
Adam Foroughi, AppLovin’s CEO, has seen his personal internet value plunge from more than $27 billion in December to $17.3 billion as of Tuesday.
Foroughi’s co-founders, John Krystynak and Andrew Karam, have seen their fortunes dip 29.3% and 23.2%, respectively.
As of Tuesday, Krystynak has misplaced $2.4 billion year-to-date while Karam’s internet value has been subtracted by $2.8 billion.
Jim Goodnight, co-founder of SAS Institute, one of the world’s largest privately-held software corporations, has seen his fortune fall 23.2% since Jan. 1 — shedding roughly $3.3 billion, according to the Bloomberg Billionaires Index.
Oracle founder Larry Ellison has misplaced almost $40 billion this yr as shares of his company slid, knocking him to sixth place on the listing of the world’s wealthiest moguls.
Bloomberg positioned his internet value at $207 billion.
Coinbase CEO Brian Armstrong’s wealth is down 18%, with losses of roughly $1.8 billion year-to-date.
Coinbase CEO Brian Armstrong’s fortune is down sharply as tech and crypto markets retreat. REUTERS
Earlier this week, Anthropic launched its new Cowork platform, which incorporates a plugin designed to automate routine legal work — the latest instance of AI doing showing to do duties once do by people with software.
The legal plugin permits AI to carry out duties historically dealt with by attorneys, including contract review, risk flagging and more.
The tech raised the likelihood that a general-purpose AI can now do the same work as a particular person on his or her pc at a fraction of the price.
Adam Foroughi and spouse Jaclyn Foroughi attend the Baby2Baby Gala in West Hollywood months before AppLovin shares tumbled. Getty Images for Baby2Baby
The announcement sparked a $285 billion selloff across software, financial companies and asset management shares.
LegalZoom shares plunged 20% while RELX fell as a lot as 17% and Wolters Kluwer dropped up to 13%.
Intuit shares slid 11%, as traders seen accounting software as the next probably goal for AI disruption.
Jensen Huang, CEO of AI chipmaker Nvidia, said that the selloff made no sense to him.
AppLovin co-founder Andrew Karam has seen his internet value drop sharply as the company’s shares slide. LinkedIn/Andrew Karam
“It’s the most illogical thing in the world,” Huang said in feedback that have been reported Tuesday by Bloomberg News.
“There’s this notion that the tool is in decline and being replaced by AI. Would you use a screwdriver or invent a new screwdriver?”
Capital markets veterans say the tech wipeout isn’t just about artificial intelligence — it’s about money getting costly.
“This isn’t just about AI. It’s about gravity,” said William Stern, founder of small-business fintech Cardiff.
“When money costs 5% or 6%, you can’t value a company on profits that might happen in 2030. That math doesn’t work anymore.”
SAS founder Jim Goodnight is among software billionaires hit laborious in the 2026 tech downturn. SAS Software
Stern said traders are no longer keen to wait years for returns that might never materialize.
“The market is finally waking up and asking, ‘Where is the cash flow today?’” he said. “If you can’t answer that, your stock gets crushed.”
He argued that AI hype masked deeper issues in software valuations during the period of low cost capital.
“AI is real. But the valuations were fake,” Stern said.
“They were built on the idea that money would be cheap forever. Now that capital is expensive, investors are done with the fairy tales.”
Stern dismissed the concept that technological promise alone can maintain stock costs.
“You can’t pay a dividend with a language model,” he said.
“You need profit. That $62 billion drop is just the froth blowing off the top.”
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