Sequoia's bet: cloud grew software to $650B, AI targets the $10T services market
FinanceYF5 · x · 2026-11-04
Sequoia laid out its thesis at AI Ascent 2026: cloud computing grew the software market from $350B to $650B, and AI now targets the $10T+ services market where machines can start doing the work itself.
- The event was held this April with 150+ attendees including Hassabis, Karpathy, Brockman, and Boris Cherny
- The accompanying slide compares three markets: AI at just $6B of $350B software, $400B of $650B software+services, and only $75B of the $10T services market, with the gap marked "??"
- Key takeaway: the next AI giants may sell the work itself, not tools or copilots
- The author compiled Sequoia's full 12-point framework into a thread
Related event: Sequoia's AI Ascent 2026: AI Eyes the $10 Trillion Services Market(6 posts)→
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