Anirudh Devgan offers an intriguing perspective on why intelligent individuals continually repeat the same mistakes.
Throughout history, each wave of technological advancement has been met with a predictable blend of overconfidence, short-sightedness, and a resistance to abandon the familiar. The internet reshaped businesses; the era of mainframes caused significant shifts; and today, artificial intelligence is doing the same.
“Technology evolves at a faster pace,” he remarked to Fortune at the Great Place to Work’s For All Summit in Las Vegas, discussing the swift changes in the tech landscape. “There are more tools available, yet the human aspect remains unchanged,” he noted.
What sets Devgan apart is his background; he is not just a theorist but an engineer deeply entrenched in the AI revolution. As the president and CEO of Cadence, a leader in electronic design automation valued at over $90 billion, he is witnessing firsthand one of the most significant technology booms in history. Time and again, he observes the same human behaviors manifesting in corporate environments, governmental discussions, and the larger culture surrounding AI anxiety and excitement.
AI vs. Humanity
During a panel discussion with Great Place to Work CEO Michael C. Bush, Devgan shared his thoughts on the current hype surrounding AI.
“There is certainly some AI washing,” he stated, referring to the trend of attributing large layoffs to AI efficiencies that may not actually be realized. “It’s a genuine phenomenon. It’s monumental,” he claimed, mentioning forecasts that originally pegged the semiconductor market – vital for his clients – to reach $1 trillion by 2030; however, Devgan updated this to expect it to hit $1.2 trillion this year. This is remarkable considering global semiconductor sales were estimated at around $793 billion in 2025, as reported by the Semiconductor Industry Association.
“The industry is accelerating significantly due to AI,” he asserted. Perhaps this optimistic outlook contributes to why Cadence ranked No. 11 on the 100 Best Companies to Work For list in 2026.
Backstage with Fortune, Devgan dismissed the notion that AI represents something unprecedented, despite acknowledging its advancements. He consistently reiterated: human behavior remains constant, regardless of the technological shifts society experiences.
Data Centers Aren’t the Real Crisis
This viewpoint sheds light on why Devgan appears unfazed by one of the loudest concerns in tech today: that AI data centers could strain electrical grids, increase utility costs, and ultimately be unsustainable.
He views this as a typical first-derivative error—drawing direct lines from current conditions while overlooking human creativity that often changes the trajectory. Labeling it a “first-derivative projection,” he noted that people associate the data-center surge with rising utility costs. “But human innovation always evolves,” he insisted. He believes that software efficiencies—not quantum computing or new energy sources, but simply improved algorithms—will enable tenfold advancements in AI computation, render today’s projections obsolete.
“This is a recurring theme in software,” the seasoned Silicon Valley executive shared with Fortune. “A single software modification can lead to a tenfold increase.”
Balance Sheet Philosophy
Cadence maintains a rigorous approach to its balance sheet and debt management. The company reported over 14% revenue growth and approximately 45% non-GAAP operating margins in the fiscal year 2025, establishing itself as one of the most profitable entities in technology. Despite this success, Devgan intentionally allocates 20% of investments to future ventures—recently including a $3 billion acquisition of Hexagon’s design and engineering division.
“The optimal time for such initiatives is when you’re thriving,” he said. “A common mistake during successful phases is the temptation to exploit existing resources excessively.”
What’s Next for Tech
When discussing future developments, Devgan becomes more animated. He referred to Waymo as “the most significant breakthrough in AI over the past five years”—indicating a transformation for a $3 to $4 trillion global transportation industry on the cusp of change. He estimated that 25% of downtown Los Angeles is comprised of parking lots—properties that could be repurposed once self-driving technology becomes mainstream. In the realm of defense, he thinks the sector will be “completely redesigned for autonomy,” highlighting the absurdity of a $1 million missile being used to intercept a $30,000 drone. Robotics and drug discovery are the next frontiers: “We can’t even begin to fathom how different the world will be.”
Yet, amidst this enthusiasm, he returns to his core belief: human nature remains constant. Today’s youth share the same concerns about careers and friendships as previous generations. Nostalgia for past eras is often misplaced. Warnings about disruptions tend to be exaggerated, and timelines frequently off the mark—self-driving cars were expected to appear in 2012, he pointed out, and only now are they becoming a reality.
Speaking with Bush, Devgan framed this perspective not as pessimism but as a guiding principle. His primary concern regarding AI adoption is not the technology itself, but rather the disconnect between eager executives and skeptical employees.
“Leadership is optimistic about the potential,” he observed, “while employees often harbor doubts—and that’s the real issue.” His advice to leaders? Avoid framing AI solely in terms of margins and efficiencies.
“We need to engage everyone and do so transparently,” he recommended. Not every discussion should revolve around financial outcomes and increased margins; it’s equally important to consider its effects on the entire organization (in other words, the human aspect).
