Sequoia's $1T thesis: sell the work, not the software — and why copilots may be the wrong bet
basedjensen · x · 2026-11-02
Sequoia partner Julien Bek argues the next $1 trillion company will be a software company masquerading as a services firm. Guillermo Flor unpacks why: selling a copilot means competing with every model release, while selling outcomes (closing books, reviewing contracts, handling claims) means every AI improvement boosts margins. Key number: for every $1 spent on software, $6 is spent on services — the real prize is the labor budget, captured at software margins. Not "AI for accountants" but the AI accounting firm, which implies many founders may be building the wrong thing.
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