Bill Gurley Predicts AI 'Reset' After Quick Riches, Cites SaaS Opportunities

Benchmark general partner Bill Gurley predicts an impending 'reset' in the artificial intelligence sector, following a period of rapid wealth creation. Gurley draws parallels to historical tech bubbles, noting that such bubbles often emerge when a genuine technological wave creates opportunities for quick riches. He references the work of Carlota Perez, an economic scholar who wrote "Technological Revolutions and Financial Capital: The Dynamics of Bubbles and Golden Ages," and noted that "bubbles only exist when the actual wave is real."

Gurley advises investors to prepare for the reset by identifying undervalued software-as-a-service (SaaS) stocks and capitalizing on the market downturn. He notes that software stocks have been particularly hard-hit recently, with Salesforce and ServiceNow each losing about 25% so far in 2026, and the iShares Expanded Tech-Software Sector ETF (IGV) down about 20% this year. Tech companies are spending at record rates, due to massive investments in AI infrastructure and soaring memory costs. AI spending for Amazon, Meta, Google and Microsoft is projected to be about $700 billion this year.

Gurley expresses concern about the high burn rates of AI companies like Anthropic and OpenAI, highlighting the financial risks associated with pursuing ambitious AI projects. He draws a comparison to Uber's annual burn rate of $2 billion during his involvement, which he described as 'high anxiety.' Overall, Gurley's prediction suggests a potential market correction in the AI sector, creating both risks and opportunities for investors. A market reset could lead to a more sustainable and rational valuation of AI companies, fostering long-term growth.

_Context: This intelligence report was compiled by the DailyAIWire Strategy Engine. Verified for Art. 50 Compliance._