SaaSpocalypse Panel at Milken Institute: SaaS Vendors Outsourcing AI Compute to Model Providers

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At the Milken Institute conference in Los Angeles, a panelist discussing 'The Business of AI' coined the term 'SaaSpocalypse' and observed that traditional SaaS companies have made the strategic decision to outsource their AI compute to model providers rather than building in-house. This aligns with the broader 'system of intelligence vs system of record' framing gaining traction, where every SaaS deck for the next five years will claim to be the intelligence layer on top of someone else's data.