Trillion-Dollar Losses Ignite Discussions at Web Summit Qatar

Doha, Qatar – This week, the staggering $1 trillion losses at major US software companies like Microsoft and Salesforce sent shockwaves through Silicon Valley and beyond.

At the Web Summit Qatar, founders of rapidly growing AI unicorns and leading venture investors openly discussed the state of AI valuations. They acknowledged that these valuations might appear inflated, but emphasized that the narrative of a software “Armageddon” is arguably overstated.

Arvind Jain, founder of the $7 billion AI unicorn Glean, expressed skepticism about AI rendering software-as-a-service obsolete. “I think AI is a very powerful technology that humans need to incorporate,” he said. He further added that product and service delivery will persist, suggesting that integration is key for the future of software services.

On a related note, Andrei Kushid, founder of the $17 billion decacorn Miro, remarked that while AI valuations are “crazy and will be corrected,” he anticipates a normalization in these valuations over the next couple of years.

Many technology investors also share the sentiment that the AI bubble is deflating. Larry Lee, founder of Amino Capital and a recognized member of Forbes magazine’s Midas List, commented, “It’s just a matter of time” for large companies in the sector.

Investors and founders are drawing parallels to the dot-com era, suggesting that while numerous startups may fail, the survivors could emerge as the generational leaders in the AI field. In Doha, there’s a prevailing belief that the current boom is more “responsible” than previous cycles since many companies are, in fact, generating profits—even if their valuations may need recalibrating.

IPO Market Dynamics

The IPO market sparked considerable discussion as reports indicated that AI powerhouses like OpenAI and Anthropic are vying to be the first to go public and cash in on the surging interest from investors eager to engage with high-growth companies.

Kushid indicated a preference for remaining private, emphasizing that his company has been profitable for years. He believes operating outside the pressure of public markets allows for greater efficiency.

Interestingly, many leading AI startups, including OpenAI and Anthropic, remain unprofitable; in fact, some estimates suggest OpenAI could incur a $14 billion loss this year. Nevertheless, investor enthusiasm remains unabated, with over $340 billion funneled into global startups in 2025, of which over 65% has been allocated to AI companies.

Funding Discrepancies

While AI firms still enjoy robust funding, other types of startups are finding the landscape increasingly challenging. During a panel moderated by FOX Business, Juan Pablo Ortega, founder of Yuno and the notable Latin American unicorn Rappi, spoke about how non-AI startups are often unfairly compared to those in the AI sector, which are achieving unprecedented growth rates.

“You’re going to be compared to AI companies that are growing 1,000% year over year and doing things that other companies can’t do,” he pointed out.

US-China AI Race

The competitive dynamics between the US and China in the AI arena also emerged as a hot topic. Larry Lee from Amino Capital argued that while the US leads in innovation, China has the upper hand in scaling up, benefiting from superior supply chains, production capabilities, and a larger talent pool of AI engineers.

When faced with the question of which nation might “win,” many participants suggested that both could coexist, with proprietary models like OpenAI and various options proliferating in China.

Amid the backdrop of recent stock market turbulence, it’s noteworthy that the Dow Jones Industrial Average has crossed the significant threshold of 50,000, bolstering the view that the AI race retains its intensity, despite a predicted valuation reset on the horizon.