The next AI winners: Private market signals

At the Spark private companies conference, Morgan Stanley analysts noted that private markets have validated AI demand, with startups scaling faster than ever, some reaching $1 billion in annual recurring revenue quickly. Coding and reasoning tools are growing faster than application software that requires full business solutions, due to shorter development and deployment cycles. The potential addressable market for AI agents is estimated at $30–40 trillion, with early adoption seen in both consumer and enterprise use cases.