OpenAI COO Says 'Be Long On Legacy Software' As It Could Benefit From AI

OpenAI’s Chief Operating Officer Brad Lightcap said legacy software companies could emerge as major beneficiaries of AI rather than casualties, describing it as a “contrarian opinion” amid the ongoing public software selloff.

OpenAI COO Makes the Contrarian Case

“If you’re long AI and long startups, then it might even make sense, as a contrarian opinion, to be long legacy software, too,” Lightcap said on Wednesday's episode of the Uncapped with Jack Altman podcast.

Lightcap, who joined OpenAI in 2018 as Chief Financial Officer before becoming COO, said legacy companies restarting with AI have a head start — “you’ve got the benefit of existing teams,” legacy customer relationships, and the ability to learn faster than someone starting from scratch.

Lightcap’s comments follow a sharp selloff of software stocks, dubbed the software apocalypse, which began in early February after investors grew concerned over Anthropic‘s Claude large language model.

He also noted that global software penetration is still around 1%, calling AI-driven modernization of outdated systems—such as hospitals and power grids—"one of the greatest gifts to the world."

The comments come amid growing skepticism over legacy software’s future. Billionaire Mark Cuban declared “software is dead” in a February podcast, arguing AI will replace static tools with customized models. Some analysts have similarly warned that beaten-down software stocks may not be a buying opportunity, but the early stages of structural AI-driven demand suppression.

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