AI's Impact: Apollo Takes a Stand Against Tech

Apollo, a major investment firm, has revised its stance on technology companies, now highlighting significant risks—particularly for those in the software sector. The firm is taking a bold move by betting against loans from notable companies like Internet Brands, SonicWall, and Perforce.

Why the Shift? AI's Growing Threat

Apollo believes AI poses a substantial risk to traditional software companies. With AI capable of performing tasks previously handled by humans—such as coding, customer service, and financial tasks—the question arises: What happens to companies selling software for these functions?

This isn't just about a few firms; it's about the entire industry. If AI can replace software, many companies may face serious challenges. Apollo isn't just predicting this trend—it's acting on it by shorting these companies, signaling its belief that they won't perform well.

Is Apollo Right?

The answer remains uncertain. While AI is powerful, it isn't flawless. It can handle many tasks but not everything. Additionally, people still prefer human interaction over machines.

A Pivotal Moment for Tech

If Apollo is correct, many companies will need to adapt or risk obsolescence. If it's wrong, the firm could face a major misstep. Regardless, this is a story to watch closely.