Sacks contrasts limited AI copilots within individual SaaS tools with cross-platform AI tools like Claude that span multiple products.
“All these SaaS products are rolling out like AI copilots inside their tools. And some of them work pretty well, but they're limited to playing in that sandbox.”
Sacks argues established SaaS products have millions of bug reports and enterprise testing that AI-generated code cannot replace.
“Think about how many bug reports have been filed on Salesforce's code base over the last twenty five years, maybe millions of them. That system has been tested across thousands of large customers and enterprises.”
Sacks reveals Leopold's short positions on Adobe and SaaS also contributed to losses.
“He short Adobe and a whole bunch of other SaaS companies. And those trades also moved the wrong way on him.”
“The “AI capex is a bubble” and “SaaS is dead” narratives getting shredded this morning. NVDA +8%, SFDC +20%. NVDA: $96B q2 revenue (+106%), ~$60B net income, 75% gross margin. Highest core-business quarterly profit ever. Guided FY28 rev +70% vs Street exp 45% — and that’s a”