GOLDMAN SACHS: THE SOFTWARE UNIT STARTED TO DELIVER THE AI DIVIDEND

Peter Callahan, an expert in Goldman Sachs ' TNT trading, noted that after the current financial season, the AI narrative within the software block was changing. While the market was more concerned about generating AI to weaken the moats of traditional software companies, the area of data infrastructure and the development of tools has begun to shift from "AI reverse wind" to "Ai wind ", with companies such as Cloudflare, Palantir, Datadog, Twilio and Atlassian receiving more attention; by contrast, the ability of traditional SaaS applications to establish an equally clear AI benefit logic remains to be tested. The change behind this is that the commercialization of AI begins to extend from model training to reasoning, Agent and automated applications. Cloudflare has disclosed that non-human flows have exceeded human flows and expects a rapid increase in machine-generated network requests if current trends continue. This means that AI is not necessarily just a substitute for software companies: for platforms that carry data, API, network traffic, security and the development of tools, the increased number of Agents and the frequency of calls can themselves become new sources of demand. As a result, the software industry is becoming clearly divided: the benefits of AI are increasingly dependent on whether the enterprise is at the application or infrastructure level and whether it can be realized directly from the growth of AI flows. Kim Xian