An a16z investor argues that AI labs can turn more capital into better products by buying computing power. He contrasts that with the overhead and conflicting priorities of hiring huge teams.
In a conversation shared by a16z, an investor at the firm argues that spending on computing power can compound AI companies’ advantages, helping concentrate returns. On the fund side, a16z says Accolade Partners examined 3,000 US venture firms and found only 20 that delivered consistent 3x net returns over two decades. According to a16z, their common feature was access to category-defining companies, fund after fund.
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An a16z investor argues that AI labs can turn more capital into better products by buying computing power. He contrasts that with the overhead and conflicting priorities of hiring huge teams.
In a conversation shared by a16z, an investor at the firm argues that spending on computing power can compound AI companies’ advantages, helping concentrate returns. On the fund side, a16z says Accolade Partners examined 3,000 US venture firms and found only 20 that delivered consistent 3x net returns over two decades. According to a16z, their common feature was access to category-defining companies, fund after fund.
a16z@a16za16z's David George says AI's power law is becoming more extreme because dollars alone can compound a company's advantage: "Right now, clearly the power law is more extreme than it has been in the last 10 to 20 years of technology investing, probably going back to the emergence…
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a16z@a16za16z's David George says AI's power law is becoming more extreme because dollars alone can compound a company's advantage: "Right now, clearly the power law is more extreme than it has been in the last 10 to 20 years of technology investing, probably going back to the emergence…