Are software companies facing an 'existential threat' from AI agents?

5 Feb, 2026 | The Business (ABC)
Are software companies facing an 'existential threat' from AI agents?

ABC News' "The Business" recently spoke with our co-founder Armina Rosenberg about a dramatic shift in our portfolio: we've gone from long software to net short. The reason? AI agents have advanced so rapidly that they're threatening to displace traditional software tools.

Claude's skills marketplace now enables users to create agents for tasks like email management and scheduling — capabilities that previously required dedicated software. This shifts the build versus buy dynamic and intensifies competitive pressure. Meanwhile, per-seat pricing models face headwinds as AI agents replace human workers.

We exited Atlassian entirely on this view. While some software with data moats or regulatory complexity may survive, the uncertainty around which companies are defensible led us to reduce exposure across the sector.

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