I'm Taylor Riggs, and this is the Fox Business Rundown.

Friday, February 27th, 2026.

This is all hardware versus software.

The rise of AI proved once again this week.

It continues to raise questions about what our economy will look like in the future.

Do you think Microsoft's just going to give up?

No.

It's legacy and it's, you know, business?

No, absolutely not.

And those are innovative people running that company.

They're going to find a way to integrate AI into their business and still survive and thrive in that environment.

It's just how do they do it?

We're coming to the end of what was a volatile February.

Much of that volatility pegged to growing anxiety on Wall Street about the long-term impact

of artificial intelligence.

Software stocks are experiencing a significant sell-off driven by fears that AI tools from companies like Anthropic will disrupt traditional software-as-a-service business models for major players like Microsoft, Adobe, even Salesforce.

Meanwhile, a standoff between Anthropic and the Pentagon over the military's use of AI has

also rattled investors.

To help make sense of it all, let's bring in Lou Bassinese.

Lou is the Executive Vice President of Market Strategy at Prairie Operating Company and a Fox

News contributor.

Great to have you here, as always. So, okay, hardware versus software.

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