Software Apocalypse: AI, CapEx & a Frozen Labor Market..

The first week of February 2026 may be remembered as the moment Wall Street finally asked the question it avoided for 18 months: Can AI replace the software it was supposed to enhance?After Anthropic launched automation tools aimed directly at legal and financial workflows, nearly $1 trillion in software market value evaporated in days. The sector didn’t just fall — it was repriced.In this Weekly Wrap, we break down:• Why AI agents just turned from friend to foe• Why software margins and licenses are under real threat• Why Big Tech’s massive AI CapEx is no longer being rewarded• Why Amazon, Alphabet, and Microsoft are being forced to prove monetization• Why the labor market is slowing — without layoffs• Why “resilience” may actually be paralysisThis isn’t panic. It’s a reset.Support the show