AI upends the software ecosystem
Watch on YouTube ↗  |  February 09, 2026 at 19:24 UTC  |  5:34  |  CNBC
Speakers
Ali Ghodsi — CEO, Databricks
Deirdre Bosa — Anchor, CNBC

Summary

  • Databricks has raised new funding (Series L), making it the 4th largest private US company, driven by the insight that 80% of new databases on their platform are now built by AI agents, not humans.
  • CEO Ali Ghodsi predicts a massive explosion in software and database volume because AI agents are now writing code; however, the "interface moat" (how hard software is to learn) is evaporating.
  • A clear bifurcation is emerging in the software sector: "System of Record" companies with deep data moats (like SAP) are safe, while smaller, interface-heavy SaaS companies are highly vulnerable to disruption.
Trade Ideas
Ticker Direction Speaker Thesis Time
DATABASES /CLOUD INFRASTRUCTURE
LONG Ali Ghodsi
CEO, Databricks 		AI agents and "vibe coding" are taking over software creation. 80% of Databricks' new databases are created by AI, not humans. AI agents write software faster than humans. Every piece of software needs a database to store information. Therefore, the volume, usage, and optimization of databases will increase significantly over the next few years. Databricks internal data shows a massive spike in AI-generated database creation. The optimization must shift from catering to human administrators to catering to AI agents; legacy databases that cannot adapt to "agent-native" interaction may fail. 0:24
SAP
LONG Ali Ghodsi
CEO, Databricks 		Despite the AI disruption narrative, legacy giants like SAP are insulated. SAP possesses a "Data Moat." They are the "system of record" for global enterprises. It is incredibly difficult to replace them because they hold the critical operational data. There is no viable alternative to rip and replace their infrastructure, and they are successfully integrating AI into their existing stack. Ghodsi asks rhetorically, "What would you replace SAP with?" noting there is no real alternative. Slower execution on AI integration compared to agile startups. 2:47
SMALL CAP SAAS /GENERIC SOFTWARE
AVOID Ali Ghodsi
CEO, Databricks 		The market is waking up to the risk facing software companies that rely on complex user interfaces rather than proprietary data. (Anchor mentions Monday.com down 20% as an example). Historically, a software company's "moat" was that it was hard for humans to learn a new interface. AI destroys this moat because humans can now just "talk" to an AI agent to get tasks done, bypassing the specific software interface entirely. If a company doesn't own unique data (is not a system of record), it can be easily bypassed or replaced by an agent. The rapid shift to natural language interfaces (like Databricks' own "Genie") replacing complex technical dashboards. Oversold conditions; some vendors may successfully pivot to becoming "agent-first" platforms. —
IPO
WATCH Ali Ghodsi
CEO, Databricks 		Databricks is delaying its IPO despite being free cash flow positive. The company prefers private capitalization to weather potential public market volatility (fearing a repeat of 2022). They want to invest in long-term R&D (5-10 years) without the quarterly pressure to cut costs or layoff staff if the stock drops. Raised Series L funding specifically to stay private longer. Prolonged delay could fatigue early employees or investors seeking liquidity. —