SC

Sequoia Capital Cast

05/07/25

@ Sequoia Capital

Startups should create end-to-end solutions that solve customer problems rather than just providing tools, ensuring they meet customer needs effectively.

SC

Sequoia Capital Cast

05/07/25

@ Sequoia Capital

Founders need to adopt a 'stochastic mindset' and operate at maximum velocity all the time to succeed in the AI landscape.

SC

Sequoia Capital Cast

05/07/25

@ Sequoia Capital

The AI services market is at least an order of magnitude bigger than the cloud market was at its inception, with the potential for massive growth in the next 10 to 20 years.

SC

Sequoia Capital Cast

05/07/25

@ Sequoia Capital

AI is not just targeting the services market; it is also attacking the software market, creating opportunities in both profit pools.

SC

Sequoia Capital Cast

05/07/25

@ Sequoia Capital

Companies that start with software can evolve into smarter solutions, transitioning from selling tools to selling outcomes and labor budgets.

SC

Sequoia Capital Cast

05/07/25

@ Sequoia Capital

The waves of technology are additive, meaning the opportunity presented by AI is larger than previous technological transitions and is arriving much faster.

SC

Sequoia Capital Cast

05/07/25

@ Sequoia Capital

The distribution of technology has changed; the barriers to adoption for AI are minimal, allowing for rapid integration into everyday life.

SC

Sequoia Capital Cast

05/07/25

@ Sequoia Capital

The current landscape offers a lot of white space for innovation in AI, with many opportunities still available for startups to explore.

SC

Sequoia Capital Cast

05/07/25

@ Sequoia Capital

Successful companies in previous tech transitions reached over a billion dollars in revenue, and similar opportunities exist in the AI application layer.

SC

Sequoia Capital Cast

05/07/25

@ Sequoia Capital

To succeed in AI, startups should focus on vertical-specific and function-specific solutions that address complex problems requiring human involvement.

SC

Sequoia Capital Cast

05/07/25

@ Sequoia Capital

95% of building a successful AI company involves traditional business practices, while the remaining 5% is specific to AI technology.

SC

Sequoia Capital Cast

05/07/25

@ Sequoia Capital

When evaluating AI companies, it's crucial to differentiate between 'vibe revenue' and sustainable revenue that leads to durable behavior change among users.

SC

Sequoia Capital Cast

05/07/25

@ Sequoia Capital

AI represents a market opportunity at least 10 times larger than cloud computing, indicating a significant shift in economic paradigms.

SC

Sequoia Capital Cast

05/07/25

@ Sequoia Capital

Inspecting metrics like adoption, engagement, and retention is essential to understand how users interact with an AI product and its effectiveness.

SC

Sequoia Capital Cast

05/07/25

@ Sequoia Capital

AI is imminent, not just inevitable, as the necessary conditions such as compute, networks, data, distribution, and talent are already in place.

SC

Sequoia Capital Cast

05/07/25

@ Sequoia Capital

Don't delude yourself into thinking you have real revenue when you only have vibe revenue; it can lead to problems later.

SC

Sequoia Capital Cast

05/07/25

@ Sequoia Capital

Trust is more important than your product at this point in time; if customers trust you to improve your product, you're in good shape.

SC

Sequoia Capital Cast

05/07/25

@ Sequoia Capital

Your gross margins may not be great today, but you should have a clear path to achieving healthy gross margins over time as costs decrease and you capture more value.

SC

Sequoia Capital Cast

05/07/25

@ Sequoia Capital

A data flywheel must tie to a business metric; otherwise, it doesn't matter. This is crucial as it's one of the best modes you can build.

SC

Sequoia Capital Cast

05/07/25

@ Sequoia Capital

There's a tremendous demand for AI in the market right now, and if you don't capitalize on it, someone else will.

SC

Sequoia Capital Cast

05/07/25

@ Sequoia Capital

Now is the time to operate at maximum velocity in your business; the current environment is ripe for rapid growth.

SC

Sequoia Capital Cast

05/07/25

@ Sequoia Capital

AI applications are showing improved engagement, with daily to monthly active user ratios for AI apps like ChatGPT climbing significantly, indicating that more users are finding value in AI.

SC

Sequoia Capital Cast

05/07/25

@ Sequoia Capital

AI is fundamentally changing the accessibility, speed, and economics of software creation, making it easier for both experienced and novice coders to develop applications.

SC

Sequoia Capital Cast

05/07/25

@ Sequoia Capital

The most exciting innovations in AI are happening at the intersection of research and product development, with breakthroughs in reasoning and tool use driving progress.

SC

Sequoia Capital Cast

05/07/25

@ Sequoia Capital

The application layer is where value will ultimately accrue in AI, as companies create customer-focused solutions that leverage foundational models.

SC

Sequoia Capital Cast

05/07/25

@ Sequoia Capital

The first cohort of AI's killer apps has emerged, including ChatGPT and others, indicating a significant shift in the market, while many new companies will adopt an agent-first approach, evolving from basic prototypes to robust agents capable of performing complex tasks.

SC

Sequoia Capital Cast

05/07/25

@ Sequoia Capital

Vertical agents present a significant opportunity for startup founders who have a deep understanding of a specific domain, allowing them to create agents trained for particular workflows.

SC

Sequoia Capital Cast

05/07/25

@ Sequoia Capital

Evidence shows that vertical agents can outperform human experts in specific tasks, such as security and DevOps, indicating a promising future for AI in specialized roles.

SC

Sequoia Capital Cast

05/07/25

@ Sequoia Capital

We're entering an abundance era where coding agents will lead the way, raising questions about the quality of AI outputs when labor becomes cheap and plentiful.

SC

Sequoia Capital Cast

05/07/25

@ Sequoia Capital

The future of AI will require a shift in mindset towards a stochastic approach, moving away from deterministic programming to embrace uncertainty in AI behavior.

SC

Sequoia Capital Cast

05/07/25

@ Sequoia Capital

As AI agents become more prevalent, the management mindset will need to adapt to understand what these agents can and cannot do, leading to more complex managerial decisions.

SC

Sequoia Capital Cast

05/07/25

@ Sequoia Capital

The integration of AI agents will lead to unprecedented levels of leverage in organizations, allowing processes to be completed by AI, potentially resulting in the emergence of one-person unicorns.

SC

Sequoia Capital Cast

05/07/25

@ Sequoia Capital

The future will see the merging of processes and agents into complex neural networks, fundamentally changing individual work, company structures, and the economy as a whole.

AI's Trillion-Dollar Opportunity: Sequoia AI Ascent 2025 Keynote

Takeaways