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World of Software > Computing > Is GPT-5 the End of Traditional Software? Wall Street Sounds the Alarm | HackerNoon
Computing

Is GPT-5 the End of Traditional Software? Wall Street Sounds the Alarm | HackerNoon

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Last updated: 2025/08/18 at 11:04 AM
News Room Published 18 August 2025
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Key Takeaways

Concerns are mounting for Wall Street as AI becomes capable of automating previously complex tasks.

The ability of AI to code is advancing at an astounding rate.

GPT-5 Replace All Software their business models to adapt to an AI-dominated world.

The history of software began in earnest in 1975 when Microsoft was founded.

AI’s Rapid Rise Sparks Big Questions

There are fears emerging in the tech and finance industries in regard to AI making software obsolete.

Now that OpenAI has released GPT-5, speculation is rampant that businesses will cease software purchases completely. Investors are worried that sophisticated AI models will be able to generate code on their own, eliminating the need for traditional venders.

Why Wall Street GPT-5 Replace All Software

This is far from conspiracy, and analysts are taking it quite seriously.

D.A. Davidson’s Gil Luria has been asking if the release of GPT-5 signaled the end of software as we know it. He pointed to the sharp decline in stock prices of software companies such as Snowflake and Datadog the day after GPT-5’s release as “curious.”

The underlying reasoning is quite intuitive and straightforward.

Software only brings value when it minimizes the need for human workers.

When AI has the ability to perform tasks for companies and businesses, it sharply decreases the value software holds.

Insights from Big Tech Executives

According to the CEO of Meta, Mark Zuckerberg, AI agents could rival mid-level engineers in coding and problem-solving by 2025.

Broadcom CEO Hock Tan reportedly ceased acquiring new software firms due to concerns over the devaluation of their long-term worth due to AI. His perspective is important to note considering that Broadcom manufactures custom chips for Google’s AI operations, giving them significant insight into the industry.

Assessing the Reality of GPT-5

Not everyone is rushing to the doomsday conclusion that we’re coming to the end of the reality in which we live in.

Testing results from experts suggest that GPT-5 won’t be infallible. Some even believed that it performed worse than GPT-5 Replace All Software. That being said, it did exhibit significant progress in the evaluation of code repository analysis, which suggests that it’s only going to get better in the future.

In Defense of Software Developers

Software company leaders are not waiting for the proverbial change to start coming in — they’re proactively enacting it.

AI, according to Amplitude CEO Spenser Skates, is going to reward companies who figure out how to integrate it into their services.

Spenser further emphasized, “There will be a need for software. Someone still needs to tell the AI what to do.”

There’s even the growing notion that AI will be the first to replace those who think their products will one day replace the rest of the world.

What This Suggests About The Future

The conversation revolving software being replaced by AI is still ongoing. Here is a breakdown of what is most likely to happen intervening:

Short term – The use of AI software will most likely act as an addition to business and productivity software.

Mid term – Organizations that embrace AI will continue to stay ahead of competition and thrive.

Long term – The software industry is liable to a permanent transformation due to AI.

Final Thoughts

  • The latest GPT-5 Replace All Software will be fully automated.
  • Adjusting to newer changes is becoming a priority to business strategies of some tech leaders like Hock Tan.
  • AI is still programming at a coding level that is below decent; however progress is being made.
  • Businesses focused on GPT-5 Replace All Software likely shift to a model that will foster growth and expansion.
  • Ultimately: The integration of AI into software does not seem likely to happen any time soon; however, software is being pushed to undergo a transformation at unprecedented speeds.

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