Software billionaires have experienced a dramatic wealth decline of at least $62 billion in 2026, according to reports from Bloomberg News. A trio of founders from advertising platform AppLovin Corp. have each dropped about 30% of their wealth since January 1, topping the list of losses by US billionaires on the Bloomberg Billionaires Index. Leading the decline is Adam Foroughi, 47, the Palo Alto-based company's CEO, whose net worth has declined the most on a percentage basis with $7.8 billion wiped from his fortune. He's currently valued at $17.3 billion, down $10 billion from a five-year high in December. His co-founders John Krystynak and Andrew Karam have seen their fortunes dip 29.3% and 23.2% respectively, with Krystynak losing $2.4 billion year-to-date and Karam's net worth subtracted by $2.8 billion.
Eight of the 10 biggest declines by percentage this year are from billionaires who made their fortunes with software companies, as reported by Bloomberg News. Oracle Corp.'s Larry Ellison, 81, who was briefly the world's richest person in September, has lost nearly $40 billion after a 16% decline this year, now ranking as the sixth-richest person with a $207 billion fortune. Workday Inc. co-founder Dave Duffield, 85, has seen his fortune fall 19% for the year to $11.3 billion, with the company's shares hitting their lowest price in three years and down 25% this year through Tuesday's close. SAS Institute co-founder Jim Goodnight has seen his fortune fall 23.2% since January 1, losing approximately $3.3 billion as one of the world's largest privately-held software companies faces pressure.
The selloff was triggered by AI startup Anthropic releasing its new Cowork platform, which includes a plugin designed to automate routine legal work, sending companies like Legalzoom.com Inc. tumbling 20%, according to Bloomberg News. The legal plugin allows AI to perform tasks traditionally handled by lawyers, including contract review, risk flagging and more, raising the possibility that a general-purpose AI can now do the same work as a person at a fraction of the cost. The announcement sparked a $285 billion selloff across software, financial services and asset management stocks, with Intuit shares sliding 11% as investors viewed accounting software as the next likely target for AI disruption. The S&P North American Software Index's 15% drop in January marked its biggest monthly decline since October 2008, with shares continuing to fall on Wednesday.
Hedge funds have ramped up their short bets against software stocks this year, focusing on companies that provide basic automation services that can easily be replaced by AI, according to a CNBC report. Short-sellers have raked in a $24 billion windfall in software stocks so far this year as the overall market value in the industry plunged by $1 trillion, according to data from S3 Partners. The selloff has been so severe that Nvidia CEO Jensen Huang called it "the most illogical thing in the world," questioning why investors would bet against a company that invented a new screwdriver when they could just use an existing one. Capital markets veterans argue the tech wipeout isn't just about artificial intelligence but about money getting expensive, with William Stern of Cardiff noting that when money costs 5% or 6%, investors can't value companies on profits that might happen in 2030.
While software faces pressure, it's not the only sector experiencing declines since October. Coinbase Global Inc. CEO Brian Armstrong's fortune is down 18% for the year but by 44% since October 31, the most of any US-based billionaire in the last three months, as reported by NDTV Profit. The price of Bitcoin fell to its lowest since President Donald Trump's election victory and is down about 40% since October. Private equity players are also affected, with Thoma Bravo's Orlando Bravo losing nearly 12% this year with his fortune slipping to $13.1 billion. Intuit Inc.'s Scott Cook, 74, was worth $4.4 billion in November 2022 and nearly doubled it to hit a five-year high in July 2025 with an $8.5 billion fortune, but is now down 17% for the year to $6.5 billion, knocking him from the world's richest rankings.