Odd Lots Henry Blodget on the Software Selloff Hysteria and the Problem for OpenAI
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Mar 7, 2026 
Henry Blodget, former Wall Street analyst turned media entrepreneur and CEO of Regenerator. He argues AI is still early-stage and compares it to the 1990s internet. He calls the software-doom narrative hysteria and questions OpenAI’s path to profitable unit economics. He warns of euphoric funding, many experimental failures, and how newsrooms can use AI while preserving trust.
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AI Looks Like 1990s Internet Mania
- AI feels like the 1990s internet: huge opportunity with a wide range of reasonable outcomes and rapid flips between euphoria and doomerism.
- Small assumption changes create massive valuation swings, which explains the swift market re-ratings and software stock selloffs this year.
LLMs Won't Instantly Replace Enterprise Software
- The idea that LLMs will replace enterprise software is hysteria; companies value vendor accountability and complex integrations.
- Henry argues firms won't hand core software development to junior staff using agents without vendor support or SLAs.
Incumbent Catch-Up Can Undo Early AI Leaders
- Fast incumbent catch-up undermines early-mover dominance; Google Gemini closing the gap suggests winners aren't guaranteed.
- Blodgett compares this to Google overtaking Yahoo and warns OpenAI may be vulnerable despite early lead.