[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Sea_Of_Silence [@SeaOf_Silence](/creator/twitter/SeaOf_Silence) on x XXX followers Created: 2025-07-16 02:36:18 UTC The $939B Question: Is AI Eating SaaS or Feeding It? ————————————————— X. Introduction: AI vs. SaaS – The Enterprise Tech Power Shift We’re seeing the biggest shift in enterprise IT spending since cloud migration. AI spend is projected to hit \$644B in 2025, growing at XXXX% annually. SaaS will reach \$295B with an XXXX% growth rate. Despite early “convergence” hopes, AI is now replacing—not complementing—SaaS. ————————————————— X. The Funding Gap Between AI and SaaS Over \$120B in venture capital has gone to AI by Q2 2025, with North America taking 86.2%. OpenAI raised \$40B—8.5 times the entire 2024 SaaS funding pool. Early-stage SaaS funding is in decline, while AI dominates late-stage rounds. AI startups get 2–3x the valuation of SaaS at every stage. ————————————————— X. Rise of the AI Unicorn Club AI-native unicorns like OpenAI, Anthropic, xAI, and Scale AI have raised billions. OpenAI holds a \$157B valuation. Most major SaaS IPOs only raised \$1–2B in total. ————————————————— X. Klarna Case Study: Signal or Outlier? Klarna dropped Salesforce and Workday in favor of AI-native tools. Support headcount dropped by XXX. Resolution time improved from XX minutes to X. Revenue per employee increased from \$400K to \$700K. Klarna’s success was driven by strong engineering, IPO timing, and risk-friendly culture—not easily replicated. ————————————————— X. Three AI-Native Attack Vectors Vertical AI tools outperform generic SaaS in fields like healthcare, finance, and legal. AI agents can replace \$3,500/year SaaS seats for under \$100/month. AI startups innovate faster than both Big Tech and mid-sized SaaS firms. ————————————————— X. Market Math: AI Is Already Winning SaaS sits at \$295B with slowed growth and 2016-level valuations. AI has already reached \$644B and is growing over 4x faster. GenAI hit X% market share in one year, while SaaS took four. GenAI is forecast to reach XX% of IT spend by 2028. ————————————————— X. SaaS Vulnerability Map High-risk areas include workflow tools, customer support, BI/analytics, and HR platforms. System-of-Record (SoR) apps are relatively safe due to data and compliance lock-in—but even these are at risk. ————————————————— X. The Innovation Speed Gap AI-native companies build better, faster. Cursor outperformed GitHub Copilot in user satisfaction. Code generation with AI tools jumped from 10–15% to nearly 90%. ————————————————— X. The Technical Debt Dilemma Retrofitting AI is slow and painful for legacy stacks. Rebuilding from scratch is costly and risky. Many engineering teams lack the skills for real-time AI and ML systems. AI talent prefers startups and demands premium salaries. ————————————————— XX. The AI-Native Stack Advantage Built-in advantages include event-based logic, vector databases, agent-first APIs, and elastic inference engines. While incumbents retrofit over 18–24 months, AI startups ship new features in 3–6 months. Example: Harvey built a legal AI platform in under XX months. LexisNexis is still catching up. ————————————————— XX. VC Reality Check: Smart Money Backs AI There are 70,000+ AI-native startups globally, with XX% in the U.S. XX of the top XXX fastest-growing companies are AI-native. At least XX private AI firms have raised \$1B+. SaaS capital has dropped XX% year-over-year. ————————————————— XX. SaaS Survival Playbook Step one is admitting the threat. AI startups don’t want to partner—they want to replace you. Assess risk based on how UI-heavy, manual, or repetitive your product is. Act now: deeply integrate AI, prepare for pricing pressure, defend your data moat, and reconfigure your team. If necessary, go nuclear: rebuild your product from scratch as an AI-native platform. ————————————————— XX. Palantir: The Outlier Getting It Right Q1 2025 results showed XX% revenue growth and XX% growth in U.S. commercial business. Stock rose XXX% YoY. Deals jumped from XX to XXX year-over-year. 2025 guidance: \$3.89B–\$3.90B revenue, up XX% YoY. ————————————————— XX. Palantir’s Winning Playbook Committed early to AI and launched AIP in 2023. Introduced bootcamps that deliver working AI solutions in X days. Leveraged government R\&D for commercial advantage. Built a full-stack platform: Foundry, AIP, Apollo, and Gotham, treating AI as the operating system—not just a feature. ————————————————— XX. Lessons from Palantir Architecture matters more than features. Proving value beats talking about it. Go all-in on platform shifts. Palantir operates as an AI platform with SaaS features—not the other way around. ————————————————— XX. Conclusion: This Is Not a Convergence. It’s a War. Most SaaS companies have built AI products, but few see growth from them. AI-native startups are attracting more capital, delivering faster, and pricing better. The narrative of AI + SaaS is comforting but false. The real trend is AI instead of SaaS. Outside of Palantir (and possibly ServiceNow), no major SaaS company is showing meaningful AI-driven revenue yet. The future has already begun—and it’s accelerating. ————————————————— Source - SaaStr XXX engagements  **Related Topics** [convergence](/topic/convergence) [$295b](/topic/$295b) [$644b](/topic/$644b) [coins ai](/topic/coins-ai) [$939b](/topic/$939b) [Post Link](https://x.com/SeaOf_Silence/status/1945311500408905975)
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Sea_Of_Silence @SeaOf_Silence on x XXX followers
Created: 2025-07-16 02:36:18 UTC
The $939B Question: Is AI Eating SaaS or Feeding It?
—————————————————
X. Introduction: AI vs. SaaS – The Enterprise Tech Power Shift
We’re seeing the biggest shift in enterprise IT spending since cloud migration.
AI spend is projected to hit $644B in 2025, growing at XXXX% annually.
SaaS will reach $295B with an XXXX% growth rate.
Despite early “convergence” hopes, AI is now replacing—not complementing—SaaS.
—————————————————
X. The Funding Gap Between AI and SaaS
Over $120B in venture capital has gone to AI by Q2 2025, with North America taking 86.2%.
OpenAI raised $40B—8.5 times the entire 2024 SaaS funding pool.
Early-stage SaaS funding is in decline, while AI dominates late-stage rounds.
AI startups get 2–3x the valuation of SaaS at every stage.
—————————————————
X. Rise of the AI Unicorn Club
AI-native unicorns like OpenAI, Anthropic, xAI, and Scale AI have raised billions.
OpenAI holds a $157B valuation.
Most major SaaS IPOs only raised $1–2B in total.
—————————————————
X. Klarna Case Study: Signal or Outlier?
Klarna dropped Salesforce and Workday in favor of AI-native tools.
Support headcount dropped by XXX.
Resolution time improved from XX minutes to X.
Revenue per employee increased from $400K to $700K.
Klarna’s success was driven by strong engineering, IPO timing, and risk-friendly culture—not easily replicated.
—————————————————
X. Three AI-Native Attack Vectors
Vertical AI tools outperform generic SaaS in fields like healthcare, finance, and legal.
AI agents can replace $3,500/year SaaS seats for under $100/month.
AI startups innovate faster than both Big Tech and mid-sized SaaS firms.
—————————————————
X. Market Math: AI Is Already Winning
SaaS sits at $295B with slowed growth and 2016-level valuations.
AI has already reached $644B and is growing over 4x faster.
GenAI hit X% market share in one year, while SaaS took four.
GenAI is forecast to reach XX% of IT spend by 2028.
—————————————————
X. SaaS Vulnerability Map
High-risk areas include workflow tools, customer support, BI/analytics, and HR platforms.
System-of-Record (SoR) apps are relatively safe due to data and compliance lock-in—but even these are at risk.
—————————————————
X. The Innovation Speed Gap
AI-native companies build better, faster. Cursor outperformed GitHub Copilot in user satisfaction.
Code generation with AI tools jumped from 10–15% to nearly 90%.
—————————————————
X. The Technical Debt Dilemma
Retrofitting AI is slow and painful for legacy stacks.
Rebuilding from scratch is costly and risky.
Many engineering teams lack the skills for real-time AI and ML systems.
AI talent prefers startups and demands premium salaries.
—————————————————
XX. The AI-Native Stack Advantage
Built-in advantages include event-based logic, vector databases, agent-first APIs, and elastic inference engines.
While incumbents retrofit over 18–24 months, AI startups ship new features in 3–6 months.
Example: Harvey built a legal AI platform in under XX months. LexisNexis is still catching up.
—————————————————
XX. VC Reality Check: Smart Money Backs AI
There are 70,000+ AI-native startups globally, with XX% in the U.S.
XX of the top XXX fastest-growing companies are AI-native.
At least XX private AI firms have raised $1B+. SaaS capital has dropped XX% year-over-year.
—————————————————
XX. SaaS Survival Playbook
Step one is admitting the threat. AI startups don’t want to partner—they want to replace you.
Assess risk based on how UI-heavy, manual, or repetitive your product is.
Act now: deeply integrate AI, prepare for pricing pressure, defend your data moat, and reconfigure your team.
If necessary, go nuclear: rebuild your product from scratch as an AI-native platform.
—————————————————
XX. Palantir: The Outlier Getting It Right
Q1 2025 results showed XX% revenue growth and XX% growth in U.S. commercial business.
Stock rose XXX% YoY.
Deals jumped from XX to XXX year-over-year.
2025 guidance: $3.89B–$3.90B revenue, up XX% YoY.
—————————————————
XX. Palantir’s Winning Playbook
Committed early to AI and launched AIP in 2023. Introduced bootcamps that deliver working AI solutions in X days.
Leveraged government R&D for commercial advantage.
Built a full-stack platform: Foundry, AIP, Apollo, and Gotham, treating AI as the operating system—not just a feature.
—————————————————
XX. Lessons from Palantir
Architecture matters more than features. Proving value beats talking about it.
Go all-in on platform shifts.
Palantir operates as an AI platform with SaaS features—not the other way around.
—————————————————
XX. Conclusion: This Is Not a Convergence. It’s a War.
Most SaaS companies have built AI products, but few see growth from them.
AI-native startups are attracting more capital, delivering faster, and pricing better.
The narrative of AI + SaaS is comforting but false.
The real trend is AI instead of SaaS.
Outside of Palantir (and possibly ServiceNow), no major SaaS company is showing meaningful AI-driven revenue yet.
The future has already begun—and it’s accelerating.
————————————————— Source - SaaStr
XXX engagements
Related Topics convergence $295b $644b coins ai $939b