The concentration of AI returns

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.