Amidst market concerns about a "SaaS doomsday", Nvidia CEO Jensen Huang has spoken out to refute the scenario that AI agents will eradicate the enterprise software industry.
According to him, the market is misjudging the nature of the AI wave, instead of replacing, smart agents will operate on the platform of SaaS companies (software in the form of services) to increase productivity.
Answering the media recently, Mr. Jensen Huang emphasized that it is likely that software companies will develop AI agents running on their ecosystems themselves.
According to him, tools like Cadence, Synopsys, ServiceNow or SAP exist because of sustainable core values; AI only makes them smarter and more efficient.
Mr. Huang's statement was made in the context of a volatile market after Anthropic launched a new automation toolkit, considered a turning point for AI in the workplace.
This development led to a wave of global technology stock sell-offs. In India, brands such as TCS, Infosys, Wipro and HCL Technologies fell 4-7%, causing the Nifty IT index to lose nearly 6%, the strongest drop since the pandemic.
In the US, the S&P 500 software and service index also fell sharply in the recent adjustment.
However, Mr. Huang said that the argument "AI swallows software" is unfounded. He exemplified, there is no need to rewrite browsers or Excel when those tools already exist and are optimized.
From this perspective, AI agents will use existing software on behalf of humans, similar to a high-level automation layer running on the SaaS platform.
Answering the question of whether AI will replace software engineers, Mr. Huang affirmed that AI will support instead of eliminating humans.
He predicts that businesses still need many engineers, but the programming method will change to work at a higher abstract level, focusing on system design and process optimization instead of writing code in the traditional way.
The above statements were made just hours after Nvidia announced business results exceeding expectations. Revenue in the quarter ending fiscal year 2026 increased by 73% over the same period; for the whole year reached 216 billion USD, net profit 120 billion USD, equivalent to a profit margin of 55.6%.
In that picture, Mr. Huang's message is quite clear that AI is not a "destroyer" SaaS, but a driving force for upgrading.
Instead of replacing the enterprise software platform, smart actors will exploit these tools to expand human capacity and reshape the way businesses operate.
