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America’s second-richest Black billionaire, Robert F. Smith, has disclosed that the next wave of artificial intelligence growth will come from private software companies, not the high-profile public AI giants. His private equity firm, Vista Equity Partners, is betting heavily on applications and “agentic” software—AI tools that can perform tasks for businesses—highlighting a less visible but rapidly expanding segment of AI and alternative investments.
Smith predicts AI’s next big wave
Smith, chairman and CEO of Vista Equity Partners, spoke with CNBC about what he sees as the next frontier in AI. “AI has sucked a lot of the oxygen out of the air for many investors, drawing them into the Mag 7,” he said, referring to the tech giants dominating AI infrastructure.
“Those hyperscalers are now building out the infrastructure.” Smith said. “Some may argue they’re overvalued in parts. But the next wave will be the application providers. Historically, they capture the largest share of economic returns once the technology is adopted across markets. That’s where we are now.”
Private software firms hold AI potential
His remarks come as listed companies, including Nvidia, Microsoft, Meta, Alphabet and OpenAI, continue to see soaring valuations. Yet Smith points out that the biggest opportunities may lie in private enterprise software companies.
Smith estimates that 97 percent of such companies remain private. Vista is positioning itself at the forefront of this “agentic AI” transformation. With $100 billion in assets under management and more than 90 enterprise software portfolio companies, Vista has built what Smith calls an “agentic factory” to deploy AI across its holdings.
Thirty of its companies are already generating revenue from agentic AI, with another 30 to 40 expected to adopt it in the coming months. “Over two and a half years ago, we built the infrastructure,” Smith said. “Now we have the right partners—the hyperscalers—whose technology and capacity we can infuse into each of our companies.”
Black leaders redefine tech investment power
Robert F. Smith’s approach contrasts with other tech-focused billionaires like Alex Karp, co-founder and CEO of Palantir Technologies. Since the launch of OpenAI’s ChatGPT in November 2021, Palantir’s shares have surged more than 600 percent, lifting its market cap above $400 billion and Karp’s net worth to $17.6 billion, making him the richest Black person in the United States. Smith’s own net worth, driven by his stake in Vista, stands at $11.1 billion.
Under Smith, Vista has grown from a $3.5 billion fund in 2012 to a $100 billion private equity firm. The company has backed over 85 enterprise software businesses and completed more than 600 deals, valued in total at $320 billion, reshaping the private enterprise software sector while quietly leading the AI applications market.
