Google CEO Sundar Pichai dismissed fears about a market overreaction during the company’s recent earnings call. Responding to concerns sparked by Anthropic’s launch of new AI plugins, Pichai described the panic as exaggerated, emphasizing that AI is simply a supportive tool—just as it has enhanced Google’s products like Search and YouTube. He added that businesses that take advantage of the technology now will continue to find opportunities.
His remarks come amid steep losses in software stocks globally. Anthropic’s Claude Cowork plugins reportedly erased around $285 billion from sectors including software, legal tech, and financial services in a single trading session.
Analysts have called the event a “SaaSpocalypse,” though Pichai believes the market reaction has been blown out of proportion.
Nvidia CEO Jensen Huang joined Google’s Sundar Pichai in questioning the market’s recent reaction to AI developments. Speaking at a Cisco event, Huang described the selloff as “the most illogical thing in the world.” He explained that AI will enhance existing software tools rather than replace them. “Would you use a screwdriver or invent a new screwdriver?” he asked, adding that Nvidia has relied on such tools to free employees for more complex work, such as designing chips and computer systems.
Meta’s CFO, Susan Li, told investors last week that AI-powered coding tools have increased productivity, with the company seeing a 30% year-over-year rise in output per engineer, and power users reporting an 80% boost.
Anthropic’s growth figures
Anthropic’s growth figures underscore the market’s focus on AI. Claude Code reportedly reached $1 billion in annualized recurring revenue by November, only months after its launch. The company is said to be raising $20 billion at a $350 billion valuation. Jefferies analysts noted that OpenAI is losing corporate market share to Claude, with enterprises now accounting for 80% of Anthropic’s business.
Alphabet annual revenues exceeded $400 hundred billion for the first time
This quarter, Search continued to accelerate with revenues growing 17%. YouTube’s annual revenues surpassed $60 billion across ads and subscriptions. Cloud significantly accelerated with revenues growing 48%, now on an annual run rate of over $70 billion. Backlog grew by 55% quarter over quarter to $240 billion, representing a wide breadth of customers, driven by demand for AI products.
“We have over 325 million paid subscriptions across consumer services, with strong adoption for Google One and YouTube Premium. In addition, we have sold more than eight million paid seats of Gemini Enterprise, which we launched just four months ago. And our Gemini App now has over 750 million monthly active users. We’re also seeing significantly higher engagement per user, especially since the launch of Gemini 3 in December,” Pichai noted.
