TheInterviewTimes.com | March 07, 2026 | 02:37 PM IST | New Delhi
Nvidia CEO Jensen Huang says AI agents will replace seat-based software subscriptions with token-based usage models, reshaping the global software industry.
Nvidia CEO Jensen Huang stated at the Morgan Stanley Technology, Media and Telecom Conference on March 4, 2026, that AI agents will transform the software industry completely. He predicted a shift from traditional seat-based subscriptions to renting AI agents and specialized tokens, which could expand the market significantly.
Huang emphasized that all future software must be agentic, meaning powered by intelligent AI that performs tasks autonomously. “There will be no software in the future that’s not agentic. How could you have software that’s dumb?” he remarked during the San Francisco event.
Shift from Seats to Agents
Huang explained that software firms will evolve into agentic companies using both open and closed AI models. These companies will rent out agents for work instead of licensing static software, changing their business models fundamentally.
Gene Munster from Deepwater Asset Management supported this view, noting that seat-based models face pressure as the knowledge workforce shrinks. He highlighted that renting agents and usage-based software will thrive in this new landscape.
Software leaders like Box CEO Aaron Levie already see AI agents as key clients, anticipating a tenfold market expansion. Huang added that firms will mix owned models with rented ones, similar to employees and contractors.
Nvidia’s Investments in AI Leaders
Huang confirmed Nvidia’s $30 billion investment in OpenAI as part of its $110 billion funding round, calling it likely the final chance before OpenAI’s public listing later in 2026. He noted a scrapped $100 billion infrastructure deal earlier due to sector concerns.
The CEO also said Nvidia’s $10 billion stake in Anthropic may be its last, as the Claude AI developer prepares for an IPO. Both firms rely heavily on Nvidia chips, raising questions about intertwined relationships.
Nvidia expanded capacity for OpenAI across Azure, OCI, and AWS, while boosting Anthropic on AWS and Azure. Huang stressed providing compute power to drive revenues ahead of their public debuts.
Broader Industry Reactions
Analysts debate if AI disrupts or boosts software. Morgan Stanley’s David Chen called the environment “wartime” for software firms amid AI costs and pricing shifts.
Deloitte’s 2026 outlook predicts agentic AI will intensify competition, with AI-native challengers targeting leaders and new segments. Software teams must adapt skills for AI-first design.
Huang countered disruption fears from Nvidia’s February earnings, arguing agents will use existing tools as enhancers. HSBC analysts agree AI enhances rather than replaces the sector.
This vision aligns with Nvidia’s GTC event prep from March 16-19, 2026, where more AI advancements are expected.
