Bridgewater Warns: The Rise of AI Threatens the Survival of Traditional Software Companies

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AIMPACT update, April 28 (UTC+8). Bridgewater warned in a client report that emerging AI tools such as Claude Code pose an existential threat to traditional software companies, akin to the history of Amazon replacing Barnes & Noble. The report was written by co-chief investment officers Bob Prince, Greg Jensen, and Karen Karniol-Tambour. Software industry stocks have already been hit by a selloff, with the S&P 500 Software and Services Index down 16.6% year to date. At the same time, layoffs justified by cost savings from AI have spread across industries, from large technology companies to financial services firms. In the report, Bridgewater wrote: "The market has started pricing the risk to application software companies. Enterprises either evolve alongside AI or face disruption."
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