Nvidia's Huang Declares AI Software Fears Overblown

A Matter of Perspective on AI and Software

As a humble physicist who once pondered the mysteries of the universe I find myself pondering a more earthly matter these days: the perceived conflict between artificial intelligence and software. You see my dear readers Nvidia's Jensen Huang believes the market has 'got it wrong,' fearing AI will make software obsolete. It reminds me of when folks feared relativity would make Newtonian physics irrelevant. Nonsense I say. It's all relative you see. AI like relativity simply adds another dimension to the existing framework.

The Saaspocalypse? More Like a Software Renaissance

This so called 'Saaspocalypse' – the fear that AI will render Software as a Service (SaaS) obsolete – is in my opinion a bit of an overreaction. It's like fearing that the invention of the automobile would eliminate the need for roads. The automobile requires better roads just as AI requires better software. Instead of replacement we're looking at amplification. According to CNBC Huang says that AI agents will not displace traditional software tools but rather "use these tools on our behalf and help us be more productive." Now consider the potential impact this has on military readiness. I find myself wondering if the US Military is ready for the next AI wave perhaps they should review: US Military Prepares for Potential Iran Conflict Kardashian Style

Not All Companies Are Created Equal

However as my theories on general relativity suggest not all things are equal. Siddy Jobe of Econopolis Wealth Management wisely points out that 'not all companies are equal.' Some will adapt to the AI revolution more effectively than others. Those that focus on 'AI infrastructure software' – software vendors that help AI developers train and improve their models – are the ones to watch. It's about providing the scaffolding upon which these intelligent systems can be built. Much like building a robust theoretical framework requires a solid mathematical foundation.

From Service Based to Outcome Based: A Paradigm Shift

Neil Shah of Counterpoint Research hits the nail on the head. SaaS companies must pivot their business model from service based to outcome based. They must demonstrate tangible results driven by AI. It's not enough to simply offer a service; one must offer a solution. One must offer tangible measurable evidence to prove the solution provides a real measurable beneficial outcome. This shift requires agility innovation and a willingness to embrace change. If you can't explain it simply you don't understand it well enough!

Legacy Software: The Unsung Heroes

Let us not underestimate the power of legacy software. As Mitchell Green of Lead Edge Capital reminds us IBM is still selling mainframes it started in the 1950s. These companies possess a wealth of experience infrastructure and customer relationships. They may not be the flashiest players in the game but they are the steady hands that guide the ship. It's like the difference between a theoretical physicist and an experimental physicist. Both are essential to the advancement of science but their approaches are vastly different. But let's not forget the legacy systems they hold the experiences that are needed.

Software is Eating AI

HSBC analysts argue that 'software is already eating AI'. While AI has been profitable for hardware companies the lion's share of value will be generated within the software sector. Software companies have been quietly building agentic AI for years and are now poised to reap the rewards. So fear not the Saaspocalypse. Embrace the AI revolution. It will require a new way of thinking but as I always say 'The important thing is not to stop questioning.' Or investing for that matter.