AI Shock Causes Panic? Sequoia’s Lin Junrui: Software Companies Can Survive

Alfred Lin, co-head and partner at Sequoia Capital, said in a media interview on Wednesday that software companies are capable of weathering the current wave of impact brought by artificial intelligence (AI).

During the interview on Wednesday, Lin said:

"Don't forget, AI itself is largely software."

"Traditional software companies like Oracle still exist today."

Lin further added that he believes AI will ultimately improve most companies.

"The impact of AI is real,"

"It will enable us to do many things that were previously impossible."

Over the past few months, concerns about the disruptive potential of AI have heavily affected software stocks. This week, following a report released by Citrini Research listing the potential risks brought by AI, panic trading around AI once again shook Wall Street.

In some of his first public appearances since becoming Sequoia's co-head last November, Lin mentioned that the firm is focused on leveraging AI to amplify current human work outcomes. He cited Sequoia's recent investment in Rowspace AI as an example of how AI can help people boost efficiency and make better decisions.

Rowspace targets the financial services industry, providing companies with a unified platform to connect data. On Wednesday, Rowspace told the media that Sequoia led both its seed and Series A rounds, with total funding reaching $50 million. Other investors in the company include Emergence Capital.

Lin told the media that when using Rowspace's technology,

"Humans still play a role in the decision-making process. AI enables us to take on more strategic, more creative, and more truly human work."

At Sequoia, Lin has invested in companies such as OpenAI, Airbnb, DoorDash, and Kalshi. Lin focuses on early-stage investments and co-leads the firm with Pat Grady, who is responsible for Sequoia’s growth investment team. The growth team mainly targets more mature startups.

Lin stated that Sequoia remains committed to supporting founders for the long term and does not waver with stock market trends, citing Nvidia and Snowflake Inc. as examples. Lin said:

"Companies that can survive in the long run are all on a long journey."

"They fight for their vision over decades."