Amidst recent market volatility triggered by artificial intelligence, Alfred Lin, a partner and co-head at Sequoia Capital, stated that software companies are well-positioned to withstand the current AI wave. He believes market anxieties about AI disrupting the software industry are significantly exaggerated.
Lin highlighted in an interview on Wednesday that artificial intelligence itself is fundamentally "a large collection of software." He cited Oracle (ORCL.US) as an example, noting that many software companies considered part of the "old guard" continue to thrive. "Let's not forget, AI is software, and the software industry itself is constantly evolving," Lin remarked.
He further elaborated that the long-term impact of AI will generally be positive for businesses. "The impact of AI is real; it will enable us to do things far beyond what was possible before," Lin said. In his view, AI acts more as an efficiency amplifier rather than a force that replaces humans or destroys existing business models.
Over recent months, concerns about AI potentially reshaping industry landscapes have persistently pressured software stocks. This week, a report from Citrini Research reignited Wall Street's nervousness regarding "AI impact trades," putting noticeable pressure on the software sector.
This appearance marks one of Lin's few public engagements since he assumed the role of co-head at Sequoia Capital last November. He revealed that Sequoia's core strategy currently focuses on leveraging AI to enhance the value of existing human work, rather than simply pursuing "machine replacement." Using Rowspace AI, a recent Sequoia investment, as an example, Lin explained that the company provides a unified data connectivity platform for the financial services industry, helping businesses analyze information more efficiently and aiding decision-making. Sequoia has co-led a total of $50 million in Rowspace's seed and Series A funding rounds, with other investors including Emergence Capital.
"In Rowspace's technological approach, there is always human involvement in decision-making," Lin stated. He believes the introduction of new-generation AI tools will free people from repetitive tasks, allowing them to focus on more strategic, creative, and inherently "human" work.
As a partner focused on early-stage investments, Lin has backed several notable companies during his time at Sequoia, including OpenAI, Airbnb (ABNB.US), DoorDash (DASH.US), and the prediction market platform Kalshi. He co-leads Sequoia with Pat Grady, who oversees growth-stage investments, covering the firm's portfolio from startups to mature enterprises.
Discussing investment philosophy, Lin emphasized that Sequoia does not chase short-term market sentiment but instead provides long-term support for founders and their corporate visions. Citing examples like NVIDIA (NVDA.US) and Snowflake (SNOW.US), he pointed out that these companies did not achieve success overnight but grew through sustained investment over many years, even decades. "Companies that truly survive in the long run are those on a long-term journey," Lin said. "They spend decades refining their vision."