<div id="readability-page-1">Microsoft has built a sizable business by selling artificial intelligence models to Chinese companies, Bloomberg reported.  The report, according to Ming Pao, cited people familiar with the matter and said the development comes despite intense U.S.-China competition in the AI sector.</div>

The biggest debate hanging over software stocks in 2026 keeps intensifying: will AI agents displace the per-seat SaaS model? Capital continues rotating from software into chips — Microsoft remains ~27% off its highs, while Salesforce and Workday are deep in the red YTD. But Wedbush's Dan Ives calls the 'doomsday narrative' overblown, arguing enterprises won't rip out decades of entrenched software overnight. Is software being eaten by AI, or has the selloff carved out a golden entry point? Are you backing software or chips?

<p>The biggest debate hanging over software stocks in 2026 keeps intensifying: will AI agents displace the per-seat SaaS model? Capital continues rotating from software into chips — Microsoft remains ~27% off its highs, while Salesforce and Workday are deep in the red YTD. But Wedbush's Dan Ives calls the 'doomsday narrative' overblown, arguing enterprises won't rip out decades of entrenched software overnight. Is software being eaten by AI, or has the selloff carved out a golden entry point? Are you backing software or chips?</p>

AI Eating SaaS? Software vs Chips

<p>Microsoft has built a sizable business by selling artificial intelligence models to Chinese companies, Bloomberg reported. The report, according to Ming Pao, cited people familiar with the matter and said the development comes despite intense U.S.-China competition in the AI sector.</p>

AI TRENDS | Bloomberg: Microsoft Builds Large Business Selling AI Models to Chinese Firms