Sequoia Capital points out in its latest research report that generative AI technology has entered its second phase of development, shifting from technical tools and application exploration to continuously creating value for users. The first phase, represented by language models, sparked a wave of application innovation but suffered from low user stickiness. The biggest challenge for generative AI was its inability to consistently demonstrate its value. The second phase focuses on applications that address genuine user needs, achieving a better alignment with human requirements. Sequoia Capital believes that outstanding generative AI companies will design smoother user workflows, ensuring that AI outputs more closely meet user expectations. From a technological and application standpoint, generative AI is transitioning from general-purpose model tools to specialized domain solutions, prompting adjustments in Sequoia Capital's generative AI market map.