Sep 11, 2026 – 5.00amOne of the world’s largest venture capital firms says investors are underestimating the carnage artificial intelligence will create for software companies, warning their pivots towards AI are likely just marketing.Lightspeed Venture Partners partner Isaac Kim said software investors were changing their narratives to justify support for companies clearly being disrupted by sophisticated AI tools. He said his firm, which oversees a portfolio worth about $70 billion, was now shunning traditional software businesses in funding rounds.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
This Silicon Valley VC giant has a warning for software stocks
Lightspeed Venture Partners’ Isaac Kim, whose firm is a backer of Anthropic, said investors were underestimating the carnage that AI would bring.
TL;DRAI
Lightspeed Venture Partners ($70B) warns software companies' AI pivots are marketing; investors underestimating AI's disruption impact. The firm exits traditional software funding rounds—signaling capital reallocation toward AI infrastructure amid sector-wide disruption.
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