AI Is Scaling Faster Than Anyone Expected
In this episode, Jen Kha, Head of Investor Relations, and David George, General Partner, discuss how late-stage private markets are evolving as AI reshapes scale, capital intensity, and growth timelines. They explain why AI-driven companies are staying private longer, how infrastructure spending is changing return profiles, and what this moment means for durability, value creation, and long-term outcomes in private markets.
Timestamps:
(00:00) Introduction
(04:21) The Market Opportunity for AI
(26:48) Pricing, Monetization, and Cash Burn
(43:15) Companies Staying Private Longer
(51:30) Portfolio Composition and Construction
(57:18) Team Culture and Collaboration
Resources:
Follow Jen Kha on X: https://x.com/jkhamehl
Follow David George on X: https://x.com/DavidGeorge83
Stay Updated:
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Find a16z on X: https://x.com/a16z
Find a16z on LinkedIn: https://www.linkedin.com/company/a16z
Listen to the a16z Podcast on Spotify: https://open.spotify.com/show/5bC65RDvs3oxnLyqqvkUYX
Listen to the a16z Podcast on Apple Podcasts: https://podcasts.apple.com/us/podcast/a16z-podcast/id842818711
Follow our host: https://x.com/eriktorenberg
Not an offer or solicitation. None of the information herein should be taken as investment advice; Some of the companies mentioned are portfolio companies of a16z. Please see https://a16z.com/disclosures/ for more information. A list of investments made by a16z is available at https://a16z.com/portfolio.
Ben Horowitz breaks down the a16z structure
Ben Horowitz, cofounder of a16z, explains how the tech industry’s growth led the firm to adapt its strategy.
As technology expanded into more categories, a16z organized itself into distinct strategies: Infra, Fintech, Enterprise, Consumer, Bio, Crypto, American Dynamism, Growth, and Speedrun.
The structure allows a16z to cover a broad market while staying focused and nimble.
Marc Andreessen and Ben Horowitz on the worldview behind a16z
What a16z aims to do is provide legitimacy and power for entrepreneurs.
That idea has shaped how Marc Andreessen and Ben Horowitz have built the firm for nearly two decades.
In a recent conversation with Packy McCormick and a16z GP Erik Torenberg, they discuss the worldview behind a16z and how it’s evolved alongside technology, media, and entrepreneurship.
The AI Opportunity that goes beyond Models
The a16z AI Apps team outlines how they are thinking about the AI application cycle and why they believe it represents the largest and fastest product shift in software to date. The conversation places AI in the context of prior platform waves, from PCs to cloud to mobile, and examines where adoption is already translating into real enterprise usage and revenue. They walk through three core investment themes: existing software categories becoming AI-native, new categories where software directly replaces labor, and applications built around proprietary data and closed-loop workflows. Using portfolio examples, the discussion shows how these models play out in practice and why defensibility, workflow ownership, and data moats matter more than novelty as AI applications scale.
Timestamps:
00:00 - The AI Opportunity: Apps, Distribution, and Platform Shifts
02:17 - AI's Role in Enterprise and Consumer Applications
05:03 - Emerging AI Trends and Investment Strategies
08:43 - Traditional Software Going AI Native
14:40 - Software Eating Labor
17:04 - Case Study: Eve
21:33 - Building Defensible Moats
24:45 - Case Study: Salient
31:53 - The Walled Garden
40:23 - Incumbents vs. Startups
49:39 - AI Roll-ups
53:32 - Consumer AI Applications
56:03 - Model Aggregation Strategy
57:06 - Investment Process & Team
1:06:46 - Q&A: Customer Retention & Enterprise Sales
Resources:
Follow Alex Rampell on X: https://twitter.com/arampell
Follow Jen Kha on X: https://twitter.com/jkhamehl
Follow David Haber on X: https://twitter.com/dhaber
Follow Anish Acharya on X: https://twitter.com/illscience
Stay Updated:
If you enjoyed this episode, be sure to like, subscribe, and share with your friends!
Find a16z on X: https://twitter.com/a16z
Find a16z on LinkedIn: https://www.linkedin.com/company/a16z
Listen to the a16z Podcast on Spotify: https://open.spotify.com/show/5bC65RDvs3oxnLyqqvkUYX
Listen to the a16z Podcast on Apple Podcasts: https://podcasts.apple.com/us/podcast/a16z-podcast/id842818711
Not an offer or solicitation. None of the information herein should be taken as investment advice; Some of the companies mentioned are portfolio companies of a16z. Please see https://a16z.com/disclosures/ for more information. A list of investments made by a16z is available at https://a16z.com/portfolio.
Dark mode didn’t start as a trend - Marc Andreessen
Marc Andreessen, co-founder at Andreessen Horowitz, helped pioneer the early internet by co-authoring Mosaic, a web browser widely credited with popularizing the World Wide Web.
Due to a sensitivity to light, he found reading black text on white backgrounds difficult. As a result, early versions of Mosaic adopted a gray background. Although Marc advocated for a true dark mode, the limitations of display technology at the time made this infeasible.
Why Venture Capital is a game of outliers - Marc Andreessen
Marc Andreessen, co-founder and general partner at a16z, explains why venture capital is a game of outliers.
Venture returns are highly concentrated. Out of thousands of startups that receive funding, only a few breakout companies go on to become unicorns and generate the majority of the returns for investors.
Ben & Marc: Why Everything Is About to Get 10x Bigger
a16z cofounders Marc Andreessen and Ben Horowitz join a16z general partner Erik Torenberg and Not Boring founder Packy McCormick for a conversation on how the media and information ecosystem has changed over the past decade. The discussion breaks down the shift toward a more open and decentralized speech environment, the rise of writer- and creator-led platforms like Substack, and the erosion of centralized media gatekeepers. Marc and Ben also tie these dynamics to their investing worldview, outlining how supply-driven markets, major technological step changes, and reputation-driven venture platforms shape outcomes in the AI era.
Timestamps:
00:00 - Introduction
00:46 - How the Media Ecosystem Is Changing
04:20 - Why a16z Invested in Substack
06:28 - Supply-Driven Markets and New Content Creation
08:07 - Why Writers Felt Trapped by Media Companies
10:09 - Databricks and the 10x Cloud Multiplier
13:58 - Long-Form Podcasting Proves Demand
15:40 - What the New Fund Signals About the Future
16:24 - AI as a Universal Problem Solver
18:49 - Why Market Sizing Is Broken
20:45 - Go-to-Market, Policy, and Platform Power
22:37 - Turning Inventors into Confident CEOs
25:58 - Borrowing Power to Scale Faster
27:29 - Building Dreamers, Not Killing Dreams
30:46 - Reputation as a Core Competitive Advantage
35:57 - Taking Arrows in Public
38:56 - Avoiding Big Company Failure Modes
40:39 - Autonomous Teams Inside a16z
41:54 - Venture Capital as the Last Job
46:01 - Why Intangibles Matter More Than Ever
48:17 - Original Thinkers with Charisma
50:06 - Why Zoomers Are Different
Resources:
https://www.notboring.co/p/a16z-the-power-brokers
https://www.a16z.news/p/firm-fund
Follow Marc Andreessen on X: https://twitter.com/pmarca
Follow Ben Horowitz on X: https://twitter.com/bhorowitz
Follow Erik Torenberg on X: https://twitter.com/eriktorenberg
Follow Packy McCormick on X: https://twitter.com/packyM
Stay Updated:
If you enjoyed this episode, be sure to like, subscribe, and share with your friends!
Find a16z on X: https://twitter.com/a16z
Find a16z on LinkedIn: https://www.linkedin.com/company/a16z
Listen to the a16z Podcast on Spotify: https://open.spotify.com/show/5bC65RDvs3oxnLyqqvkUYX
Listen to the a16z Podcast on Apple Podcasts: https://podcasts.apple.com/us/podcast/a16z-podcast/id842818711
Follow our host: https://twitter.com/eriktorenberg](https://x.com/eriktorenberg
Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures.
It's Time To Build
At Andreessen Horowitz, we just raised over $15B.
With these new funds including American Dynamism ($1.176B), Apps ($1.7B), Bio + Health ($700M), Infrastructure ($1.7B), Growth ($6.75B), and other venture strategies ($3B), we raised over 18% of all venture capital dollars allocated in the United States in 2025.
It's time to build. This is an a16z Original, produced by the New Media team for the 2026 fundraise.
Ben Horowitz on Investing in AI: AI Bubbles, Economic Impact, and VC Acceleration
AI is changing how companies are built and how venture firms operate, forcing faster decisions, clearer judgment, and new ways of working.
In this exclusive conversation, Ben Horowitz shares how Andreessen Horowitz adapts to that shift. He explains why managing GPs is different from running a company, how investors are evaluated at the moment of decision rather than years later, and why verticalized teams help the firm scale without internal politics.
Ben also breaks down the current AI cycle, from treating AI as a new computing platform to why application design and model orchestration matter more than raw model size. He discusses the return of M&A and why today’s AI market reflects real demand, not just inflated valuations.
Timecodes:
0:00 – Introduction
1:33 – Managing GPs vs. companies
4:33 – Framework for evaluating GP performance
6:23 – Verticalization strategy & firm structure
10:14 – Culture and staying in the details
12:46 – How to identify the right markets
17:49 – Mission: giving people a shot
21:28 – M&A landscape opening up
22:09 – Why foundation models alone aren't enough
25:46 – Ownership and the future of VC
29:03 – Why AI will produce more winners than previous technology cycles
32:01 – Rapid-fire personal questions
Resources:
Follow Ben on X: https://twitter.com/bhorowitz
Follow Jen on X: https://twitter.com/jkhamehl
Read Justine’s piece ‘There is No God Tier Video Model’: https://a16z.com/there-is-no-god-tier-video-model-but-there-is-something-better
Stay Updated:
If you enjoyed this episode, be sure to like, subscribe, and share with your friends!
Find a16z on X :https://twitter.com/a16z
Find a16z on LinkedIn: https://www.linkedin.com/company/a16z
Listen to the a16z Podcast on Spotify: https://open.spotify.com/show/5bC65RDvs3oxnLyqqvkUYX
Listen to the a16z Podcast on Apple Podcasts: https://podcasts.apple.com/us/podcast/a16z-podcast/id842818711
Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details, please see a16z.com/disclosures.
Marc Andreessen's 2026 Outlook: AI Timelines, US vs. China, and The Price of AI
a16z cofounder Marc Andreessen joins an AMA-style conversation to explain why AI is the largest technology shift he has experienced, how the cost of intelligence is collapsing, and why the market still feels early despite rapid adoption. The discussion covers how falling model costs and fast capability gains are reshaping pricing, distribution, and competition across the AI stack, why usage-based and value-based pricing are becoming standard, and how startups and incumbents are navigating big versus small models and open versus closed systems. Marc also addresses China’s progress, regulatory fragmentation, lessons from Europe, and why venture portfolios are designed to back multiple, conflicting outcomes at once.
Timestamps:
0:00 — Introduction
1:51 — What Inning Are We In? How Early the AI Shift Really Is
9:11 — Revenue Growth vs. Burn: Can AI Companies Scale Profitably?
15:52 — GPUs, Compute & Infrastructure: Shelf Life and Bottlenecks
24:23 — China, Open Source & the Global AI Race
32:46 — Policy & Regulation: State vs. Federal Dynamics
41:54 — AI Pricing Models: Usage-Based vs. Value-Based
47:10 — Open vs. Closed Models: Tradeoffs and Long-Term Winners
50:42 — Incumbents vs. Startups: Who Has the Advantage?
58:39 — a16z AMA: Disagree & Commit, Org Design, and Scaling Teams
1:08:44 — Jobs, Labor & How Society Adopts AI at Scale
1:15:50— Lightning Round: Rapid-Fire & Fun Questions
Resources:
Follow Marc Andreesen on X: https://twitter.com/pmarca
Follow Jen Kha on X: https://twitter.com/jkhamehl
Stay Updated:
If you enjoyed this episode, be sure to like, subscribe, and share with your friends!
Find a16z on X :https://twitter.com/a16z
Find a16z on LinkedIn: https://www.linkedin.com/company/a16z
Listen to the a16z Podcast on Spotify: https://open.spotify.com/show/5bC65RDvs3oxnLyqqvkUYX
Listen to the a16z Podcast on Apple Podcasts: https://podcasts.apple.com/us/podcast/a16z-podcast/id842818711
Follow our host: https://twitter.com/eriktorenberg
Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details, please see a16z.com/disclosures.
AI in 2026: 3 Predictions For What’s To Come (a16z Big Ideas)
AI is reshaping how discovery, connection, and business advantage are created.
In part three of Big Ideas 2026, we explore three shifts defining where AI goes next when the stakes are real and the impact compounds. Oliver Hsu explains how advances in AI reasoning and robotics are moving science toward autonomous labs, accelerating discovery while making interpretability essential. Bryan Kim explores how consumer AI is evolving beyond productivity toward connection, identity, and helping people feel seen. David Haber breaks down why the most durable AI companies are those where AI reinforces the business model itself, driving revenue, outcomes, and compounding advantage.
Timecodes:
0:00 Big Ideas for 2026
0:28 Autonomous Labs and AI in Scientific Discovery
3:55 Market Dynamics and Early Adopters in Autonomous Science
5:08 Public-Private Partnerships Accelerating AI-Driven Science
6:21 AI in Consumer Applications: From Productivity to Connectivity
7:08 AI and Human Connection: Startups vs. Incumbents
7:47 AI as a Relationship Facilitator
8:39 Personalization and the Future of Consumer AI
9:31 AI Reinforcing Business Models
10:05 Case Study: AI in Plaintiff Law and Lending
11:26 Compounding Advantages and Proprietary Data
12:29 Smarter Outcomes and the Future of AI-Driven Platforms
Resources:
Follow Oliver on X: https://twitter.com/oyhsu
Follow Bryan Kim on X: https://twitter.com/kirbyman01
Follow David Haber on X: https://twitter.com/dhaber
Read more all of our 2026 Big Ideas
Part 1: https://a16z.com/newsletter/big-ideas-2026-part-1
Part 2: https://a16z.com/newsletter/big-ideas-2026-part-2
Part 3: https://a16z.com/newsletter/big-ideas-2026-part-3
Stay Updated:
If you enjoyed this episode, be sure to like, subscribe, and share with your friends!
Find a16z on X: https://twitter.com/a16z
Find a16z on LinkedIn: https://www.linkedin.com/company/a16z
Listen to the a16z Podcast on Spotify: https://open.spotify.com/show/5bC65RDvs3oxnLyqqvkUYX
Listen to the a16z Podcast on Apple Podcasts: https://podcasts.apple.com/us/podcast/a16z-podcast/id842818711
Follow our host: https://twitter.com/eriktorenberg
Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures.
Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details, please see http://a16z.com/disclosures.
Where does consumer AI stand at the end of 2025?
As 2025 comes to a close, consumer AI is entering a new phase. A small number of products now dominate everyday use, multimodal models have unlocked entirely new creative workflows, and the big labs have pushed aggressively into consumer experiences. At the same time, it is becoming clearer which ideas actually changed user behavior and which ones did not.
In this episode, a16z consumer investors Anish Acharya, Olivia Moore, Justine Moore, and Bryan Kim look back on the biggest product and model shifts of 2025 and ahead to what 2026 may bring. They discuss why consumer AI appears to be trending toward a winner-take-most model, how subtle product design choices can matter more than raw model quality, and why templates, multimodality, and distribution are shaping the next wave of consumer products.
Where do startups still have room to win? How will the role of the big labs continue to change? And what will it actually take for consumer AI apps to break out at scale in 2026?
Timecodes:
0:00 Introduction & Market Overview
0:35 Who Won Consumer AI in 2025?
1:22 Major Model and Product Launches
2:24 Image and Video Model Innovations
4:05 Product Sensibility and User Experience
6:40 Advances in Image and Video Models
9:11 Under-hyped Products and Productivity Apps
10:21 Prosumer Tools and Power User Workflows
12:56 Gemini vs. ChatGPT: Distribution and Brand
14:04 Product Nuances: Onboarding and Engagement
16:09 Social Features and Group Chat
19:26 Sora, TikTok, and the Status Game
21:02 Challengers: Claude, Perplexity, Grok
23:37 Meta, Grok, and Rapid Model Progress
26:54 Predictions for 2026: Enterprise, Apps, and Multimodality
32:02 Startup Opportunities and App Generation
36:27 Favorite Products and Recommendations
42:19 Building Consumer Products in 2026
Resources:
Follow Anish: https://twitter.com/illscience
Follow Olivia: https://twitter.com/omooretweets
Follow Bryan https://twitter.com/kirbyman01
Follow Justine: https://twitter.com/venturetwins
Stay Updated:
If you enjoyed this episode, be sure to like, subscribe, and share with your friends!
Find a16z on X: https://twitter.com/a16z
Find a16z on LinkedIn: https://www.linkedin.com/company/a16z
Listen to the a16z Podcast on Spotify: https://open.spotify.com/show/5bC65RDvs3oxnLyqqvkUYX
Listen to the a16z Podcast on Apple Podcasts: https://podcasts.apple.com/us/podcast/a16z-podcast/id842818711
Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details, please see a16z.com/disclosures.
AI Is Scaling Faster Than Anyone Expected