Nvidia CEO Predicts AI Will Redefine Software Industry

Gene Munster echoes Jensen Huang's view that AI agents and usage-based models could transform the software landscape

Published on Mar. 6, 2026

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Nvidia CEO Jensen Huang believes that the software industry is on the cusp of a major transformation, with AI agents and usage-based models poised to disrupt traditional seat-based subscription models. Gene Munster, managing partner at Deepwater Asset Management, echoed Huang's comments, stating that the knowledge workforce could contract as companies transition towards renting AI agents and specialized tokens. The comments come amid volatility in the software sector and as AI tools from companies like Anthropic and OpenAI continue to advance.

Why it matters

This potential shift in the software industry's economics could have significant implications for how companies operate and generate revenue. The rise of AI-powered software agents could upend traditional business models and force software firms to adapt their strategies to remain competitive.

The details

At the Morgan Stanley Technology, Media and Telecom Conference, Nvidia CEO Jensen Huang stated that software will look very different in the years ahead, with the industry potentially becoming significantly larger as companies move away from seat-based subscription models towards renting AI agents and specialized tokens. Deepwater Asset Management's Gene Munster agreed with Huang's assessment, predicting that seat-based models will face pressure as the knowledge workforce contracts, while usage-based software companies will flourish.

  • On Wednesday, Jensen Huang made his comments at the Morgan Stanley Technology, Media and Telecom Conference.
  • Last week, Nvidia completed a $30 billion investment as part of OpenAI's $110 billion funding round.

The players

Jensen Huang

The CEO of Nvidia, a leading semiconductor company that has invested heavily in AI technologies.

Gene Munster

The managing partner at Deepwater Asset Management, a firm that closely follows the technology industry.

Anthropic

An AI research company that is advancing AI tools that could disrupt traditional software functions.

OpenAI

An AI research company that is also developing advanced AI tools that could impact the software industry.

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What they’re saying

“My take: Seat-based models will face pressure as the knowledge workforce contracts. Renting agents, or usage-based software companies, will flourish.”

— Gene Munster, Managing Partner, Deepwater Asset Management (X post)

“Software will look very different in the years ahead and the industry could become significantly larger as companies transition away from traditional seat-based subscription models toward renting AI agents and specialized tokens.”

— Jensen Huang, CEO, Nvidia (Morgan Stanley Technology, Media and Telecom Conference)

What’s next

Nvidia's investments in OpenAI and Anthropic are likely to be its final ones in both firms, as Huang noted that once they complete their anticipated public offerings later this year, the opportunity to invest will no longer be available.

The takeaway

This potential shift in the software industry's economics, driven by the rise of AI-powered agents and usage-based models, could significantly disrupt traditional software business models and force companies to adapt their strategies to remain competitive in the evolving landscape.