Are services the new software? This Sequoia partner thinks so | Fortune
A Sequoia partner believes the next trillion-dollar company will sell AI-delivered outcomes as a service, not AI-powered software products.Summary
Sequoia partner Roelof Botha, or Bek, posits that the future of tech lies in selling services delivered by AI, rather than software itself. He distinguishes between 'intelligence' – tasks AI excels at like coding – and 'judgment,' requiring human intuition. Bek’s analysis focuses on services already outsourced, particularly those requiring primarily intelligence with a small degree of judgment, identifying areas ripe for 'AI-native' firms. These 'autopilots' leverage AI to offer services at lower costs, potentially disrupting traditional pricing models like the billable hour. While AI may enable some companies to in-source functions, regulatory requirements and the value of external validation will keep many services outsourced. Amazon is investing up to $25 billion into Anthropic, and despite concerns about AI's potential risks, companies like the NSA are utilizing models like Anthropic’s Mythos. The U.S. currently leads in AI, but China is rapidly closing the gap in key areas, raising concerns about future competitiveness.
(Source：Fortune)
