We’re entering a ‘very violent technology cycle’ driven by AI

February 12, 2026 - 04:57

The rapid ascent of artificial intelligence is not merely a wave of innovation but a force triggering a brutal and transformative period for the technology sector. According to John Zito, deputy chief investment officer of Apollo’s credit platform, the industry is entering a "very violent technology cycle" driven by AI's disruptive power.

This cycle is characterized by a dramatic and necessary reset in company valuations, separating speculative ventures from those with sustainable models. As massive capital flows into AI infrastructure and applications, a fierce battle for market dominance is underway. Zito suggests this will inevitably create clear winners and losers, fundamentally reshaping the competitive landscape.

The violence of this cycle stems from the sheer speed and scale of change. Legacy business models are being challenged overnight, while new frontrunners emerge at a breakneck pace. This period of intense competition and consolidation will test the resilience of companies across the software and broader tech ecosystem. The coming years are poised to see a dramatic reordering of the sector as the true architects of the AI era solidify their standing.