The Hidden Economics Powering AI
The a16z Show
Value Capture: Customers Versus Providers
David and Jen debate surplus distribution and why 10% capture by vendors still yields huge market cap.
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.
Timecodes:
0:00 — 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:
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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.
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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.
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