Another SaaS sell off is coming soon and I think the rise of AI agents will be the reason why. Agents like Muse and Grok are bringing AI agents to the consumer market in masses. What was recently experimental technology is becoming something regular people can use to complete real work across their applications. Grok Bot, for example, can operate software through its own cloud computer and continue working after the user steps away. This is a much bigger threat to software companies than a chatbot that only answers questions. Instead of opening Salesforce, ServiceNow and Workday separately, an employee can tell an agent what needs to be done. The agent can then move between those applications and complete the entire workflow. This means the agent becomes the main interface, while the software underneath becomes a tool working quietly in the background. That puts pressure on the traditional SaaS business model. If agents perform more of the work, companies may not need as many paid software seats across CRM, project management and customer support. Agents could also make switching between software providers easier. Once users interact with Muse or Grok instead of the actual application, they become less attached to that software. The agent could choose whichever service offers the best price or performance. That weakens customer lock in. The agent controls the user experience and decides which software gets used, while SaaS companies risk losing pricing power and their direct relationship with customers. We have already seen how quickly investors react to this threat. New agent capabilities from Anthropic contributed to weakness in software stocks earlier this year as the market questioned whether AI would help SaaS companies or replace parts of them. Muse and Grok could cause another sell off because they are making agents available to regular people. I also think this will force OpenAI and Anthropic to respond very soon. OpenAI has already shown where it is heading. Earlier this year, it hired Peter Steinberger, the creator of OpenClaw, to help build its next generation of personal agents. I am sure they are going to release something soon and then Claude will respond with their own version. If Meta, Grok, OpenAI and Anthropic all begin releasing more capable agents, SaaS companies will no longer compete only against other software products. They will also compete against the agents controlling how customers use those products. The most exposed companies will be those selling basic productivity tools, simple workflows and large numbers of employee seats. Businesses with proprietary data, deep integrations and strict compliance requirements should be safer but they too will be affected by this sell off. If you enjoyed reading this, make sure to follow @MelvinInvests for more.