Nvidia CEO Jensen Huang said markets misread AI's impact on software, arguing cheaper code makes SaaS more valuable by letting customers customize products rather than replace them.
Shopify's Sidekick is his main example: merchants generated nearly 4,000 custom admin apps in the first three weeks after the December launch, using Shopify components and its Admin API.
That model keeps the core platform central because AI-built extensions solve narrow customer needs while adding another reason to stay with the underlying vendor's data, support and workflows.
The shift still threatens smaller point-solution developers, whose reporting or workflow tools could be displaced by good-enough generated extensions built inside larger SaaS platforms.
Huang's argument pushes back on the selloff in SaaS stocks by framing AI as a force for extensibility and customer lock-in, not a replacement for enterprise software ownership and support.