AI Revolution Thesis - Sequoia believes the AI revolution is comparable to the industrial revolution, presenting a significant transformation [1][2] - The cognitive revolution represents a $10 trillion (10 to the 13th power) opportunity [1][8] - Startups are crucial in specializing general AI technologies for specific applications [6] Commercial Opportunity - The AI-driven automation of the US services market, currently at approximately $20 billion, holds a $10 trillion potential [8] - The cognitive revolution can expand the market to include large, standalone public companies built around AI in the services space [12] Investment Trends - Work is shifting towards higher leverage (100+%) on tasks with less certainty in outcomes, requiring human correction [13][14][15] - Real-world measurement is becoming the new gold standard for proving AI excellence, surpassing academic benchmarks [15][16][17] - The industry forecasts at minimum a 10x increase in compute (flops) per knowledge worker, with optimistic views suggesting 1000x to 10,000x consumption [20] Investment Themes - Persistent memory, including long-term memory and consistent AI identity, is critical for AI's expansion into more work functions [21][22][23] - Seamless communication protocols between AIs, beyond initial protocols like MCP, will yield major applications [24][25] - AI voice is currently viable due to increased fidelity and decreased latency, with applications in both B2C and enterprise sectors [27][28][29] - AI security presents a huge opportunity across development, distribution, and user layers, potentially involving numerous AI security agents per person/agent [30][31][32][33] - Open source's ability to compete with state-of-the-art foundation models is critical for a free, open AI future [34][35][36]

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