← Back to archive

AI founders fear startups becoming features

Every AI founder has the same fear.

One model update… and your startup becomes a feature.

Sequoia has a good article on that.

The next $1T companies probably won’t sell software. They’ll sell the work.

Example.

Company pays:

➡️ $10k accounting software ➡️ $120k accountants

So the real market isn’t the tool. It’s the job.

The future company won’t sell bookkeeping software. It will just say: Your books are closed.

... or copilot vs autopilot

1️⃣ Copilot helps professionals 2️⃣ Autopilot replaces the work

And the second one captures the services budget.

Which is way bigger.

For every $1 on software, about $6 goes to services.

This is the real shift!

AI tools were assistants. Now they’re slowly becoming operators.

The question each builder should ask now:

Are you selling software…

OR

the outcome?

Source: sequoiacap.com/article/servic…

View on X

A man in sunglasses sprinkles salt dramatically while text contrasts old SaaS software with new AI companies selling outcomes.

Originally posted on X

PS: I'm pretty active on 𝕏 if you'd like to follow along

Archive

2026

2025

2024

2018