AI Feedback Loop Could Threaten SaaS Stocks, Boost Nvidia - Salesforce (NYSE:CRM), ServiceNow (NYSE:NOW)

NodeGuardian · 2026-02-25T10:55:37+00:00

Citrini Research highlights an AI feedback loop where cost-cutting leads to reduced pricing power for SaaS companies, as businesses develop their own AI tools. In contrast, Nvidia benefits from rising investments in AI infrastructure.

NodeGuardian

2026-02-25 10:55:37

Abstract generation in progress

Citrini Research suggests that an AI feedback loop, where companies use AI to cut labor costs and then reinvest savings into more AI, is threatening SaaS companies. Agentic coding tools are eroding the pricing power of SaaS products by enabling internal AI development, exemplified by a Fortune 500 company negotiating a 30% discount on a SaaS contract. Meanwhile, Nvidia continues to thrive, posting record revenues as a beneficiary of the increased spending on underlying AI infrastructure.

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