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Sandy Kory (@sandykory) tweeted on 2026-06-19 that the median large SaaS company…

2026-06-19 · 16:52 UTC ·@sandykory ·0 min read

Brief

Sandy Kory (2026-06-19) argues that many large SaaS companies are under-investing in AI M&A while public markets increasingly reward hyperscalers that pour free cash flow into AI. She warns software vendors can still avoid disruption, but only if they revise strategic assumptions and pursue more aggressive AI acquisition and investment strategies.

Why it matters

Sandy Kory (@sandykory) tweeted on 2026-06-19 that the median large SaaS company is not being aggressive enough in AI-driven M&A.

Key details

  • The author observes public markets are rewarding hyperscalers that are allocating essentially all free cash flow (FCF) into AI investments.
  • Kory asserts software firms can avoid being disrupted by AI but must “update their priors” — i.e., change strategic beliefs and act accordingly.
Source evidence

Puzzling why the median large SaaS company is not more aggressive in AI-driven M&A.

The public market is blessing hyperscalers putting all of their FCF in AI investment.

Software companies don’t have to be disrupted by AI. But they must update their priors.