When AI Capex Eclipses Software Markets: The Product Strategy Reset

The combined AI infrastructure investment from major tech companies will exceed the entire global SaaS market by 2026, fundamentally shifting the competitive landscape. Rather than adding AI features to existing products, software companies must ask whether their business model can survive when advanced AI capabilities become commoditized and often free. The contrasting fates of Chegg's decline and Duolingo's success demonstrate that the future belongs not to those who bolt AI onto legacy products, but to those who rebuild their value propositions from the ground up as AI-first companies.