AI is disrupting design software! Alphabet Inc. Class C "vibe design" emerged out of nowhere, causing Figma (FIG.US) stock price to plummet 12% in two days.

Focus on the new force of the global software industry, Figma (FIG.US), which focuses on design-type tools, saw its stock price plummet by 12% in just two days, mainly due to the tech giant Alphabet Inc. Class C (GOOGL.US) launching a "vibe design" application platform driven by cutting-edge AI technology earlier this week. This year, due to concerns related to "artificial intelligence disrupting everything," Figma's stock price has been declining steadily, with a drop of over 35% year-to-date. With Alphabet Inc. Class C introducing a "vibe design" application driven by artificial intelligence, which allows for the complete design of products using only natural language prompts, this downward trend has intensified over the past two days. In the eyes of Wall Street analysts, the closer a company is to a "single-point replicable function," the easier it is to be directly generated or automatedly replaced by large-scale AI models, and the more reliant on seat fee-charging SaaS providers are, the greater the pressure on their pricing systems and product boundaries from AI agent-oriented workflows, making them more susceptible to disruption by AI. They believe that in the transition from AI experimentation to formal deployment within enterprises, IT budgets will prioritize platform software giants closest to core systems, core data assets, and core workflows, rather than focusing on individual feature-layer SaaS providers. On Tuesday, Alphabet Inc. Class C released a new beta testing version of the "vibe design" application platform called "Stitch," where users can input prompts to create a complete design workflow for their envisioned projects. Alphabet Inc. Class C stated that this new feature is akin to a "design-type AI intelligence body" and is capable of providing real-time design feedback and responding through voice commands. Prior to "vibe coding," there is now "vibe design." Similar to "vibe coding," "vibe design" is a novel design methodology focusing on the concept of design as a conversation rather than relying on advanced professional skills to gradually build design products in a classical and traditional manner. Stitch, launched by Alphabet Inc. Class C, embodies this design philosophy. The "vibe design" concept emphasizes designing as a conversation, relying on natural language prompts to design products, rather than relying on highly specialized technical skills. The so-called "vibe coding," or ambient coding, emphasizes enabling non-professionals to create software products and can be understood as a more aggressive and more conversational subset of AI field(AI-assisted coding). The emphasis on ambient coding is using the purest form of human natural language prompts to allow AI models to generate, modify, and debug code, transitioning the human role from "writing code" to "describing requirements and goals, iterating feedback." Alphabet Inc. Class C has not yet announced any charges for Stitch, nor has it made any commitments regarding the availability of this innovative AI-driven design service. However, at a time when Wall Street investment firms are on high alert for all potential threats posed by artificial intelligence, Figma is suffering from severe sell-offs. Figma's stock price fell by 8% on Wednesday and continued to drop by over 4% on Thursday. The stock has plummeted by over 35% year-to-date, sinking alongside the broader decline in the global software industry under the pessimistic market sentiment of "AI disrupting everything." Figma went public in July 2025, promising investors at the time that as more users turn to AI-assisted product design, the company, with its exclusive "AI + design" AI application software, was well-positioned to benefit. The creative software industry leader Adobe (ADBE.US) had attempted to acquire Figma in 2023 for $20 billion, but the proposed deal was eventually terminated due to regulatory obstacles. If Alphabet Inc. Class C decides to offer this new feature to a larger pool of paying customers in the future, it may indicate its attempt to control a wider range of product design workflows and keep users within its own Google enterprise ecosystem. Alphabet Inc. Class C possesses substantial financial resources, a vast product distribution channel, and a willingness to bundle products. In October last year, Alphabet Inc. Class C's Google Cloud platform expanded its partnership with Figma, incorporating more of Alphabet Inc. Class C's generative artificial intelligence technology into the Figma design platform. The Figma Make tool allows users to input a few sentences, and the AI models developed by Anthropic and Alphabet Inc. Class C can generate or modify application designs. The storm called "AI disrupting everything" is sweeping through Figma. With the recent major releases from artificial intelligence leaders like Anthropic and OpenAI focusing on efficient agent-oriented workflows, it is highly likely that AI agent products with lower costs will replace certain functional software services, causing a significant sell-off in global software stocks. The iShares Expanded Tech-Software Sector ETF (IGV), tracking the American Software, Inc. Class A industry, has plummeted by approximately 30% since hitting a historic high in September. The pessimistic sentiment surrounding "AI disrupting everything" since February is primarily due to the market's growing concerns that the explosive and viral spread of AI agent workflows like Claude Cowork and OpenClaw (formerly known as Clawdbot, Moltbot) may weaken the entire software empire based on the SaaS seat subscription revenue model, leading to a rare sell-off that quickly spreads to industries like insurance, real estate, trucking, and any other industry that appears to rely on seat revenue models or labor-intensive business modelsmarkets believe these industries will be completely disrupted by AI. Not only the US stock market, but the software sector in global stock markets has been experiencing sustained declines since February in the fear of "AI disrupting everything." Despite the surge in buybacks in the US stock software sector, investors remain skeptical because they are genuinely concerned about whether the long-term fundamentals and business models will be completely reshaped by AI agents like Claude Cowork and OpenClaw. Orlando Bravo, co-founder of the US private equity investment giant Thoma Bravo, stated on Tuesday that artificial intelligence will disrupt software companies more quickly, and the substantial irreversible impact on valuations suffered by some companies is "very reasonable." He noted at the Thoma Bravo investor conference in Miami, "There are many software companies on the public market that will be completely disrupted by cutting-edge artificial intelligence technology. These companies will be disrupted by AI regardless." Following in-depth interviews and surveys focused on "AI substitution" conducted by the financial powerhouse Jefferies Financial Group Inc. (Jefferies) with 30 Chief Information Officers representing leading enterprises across various industries globally, the Jefferies Financial Group Inc. analyst team identified companies such as Microsoft Corporation (MSFT.US), Snowflake (SNOW.US), and Oracle Corporation (ORCL.US), which gather data assets and have "AI+ core operational processes," as the preferred stocks in the global enterprise software sector. They emphasized that these companies are undervalued due to the prevailing sentiment of "AI disrupting everything" dominated by AI agent-oriented workflows like Claude Cowork and OpenClaw. Compared to potential AI beneficiaries such as Microsoft Corporation and Oracle Corporation, the Jefferies Financial Group Inc. analysts highlighted in their report that companies like Adobe (ADBE.US) and Docusign (DOCU.US), which have easily replaceable product features by model-native capabilities, weak barriers to entry, heavy customization, and clients who can partially reconstruct single-function SaaS software using AI agent bodies, may face a "destructive impact" from cutting-edge AI technology, with a high probability of being completely disrupted by AI.