Hannah Miao

People have been vibe coding, which means people who are not technical software engineers being able to code their own tools using Claude.

And that has enabled people to play around with tools that help with a wide variety of tasks from analyzing health data to compiling expense reports.

So it's really kind of called into question the business models of these software companies.

And more recently, Anthropic announced it was adding legal tools to its co-work assistant and that it could help automate a number of legal drafting and research tasks.

So that in particular has hit a number of companies that provide legal tools or research databases.

And that kind of lit the spark for the broader sell-off in the software market yesterday.

That's right.

We've seen alternative investment firms in recent years really invest heavily in software equity and debt.

So those firms, such as KKR, Blue Owl Capital, or Blackstone, they all saw their shares punished yesterday in the sell-off as well.

So software has become a major slice of their investment portfolio, and investors in those companies are wondering if that will impact their overall business.

Yeah, it's hard to say exactly how this will play out, but we're hearing from software companies that it's not just the ability to write code that's the big part of their business.

They also do a lot of data management.

They have this trust with their clients.

And if people are vibe coding things that are handling sensitive customer information, that might not be totally secure.

So we're seeing software companies trying to defend really their value add in this environment.

And we'll see how it plays out.

Thanks for having me.