"World of DaaS" a16z’s Martin Casado - building with AI
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Apr 8, 2025 
In this engaging discussion, Martin Casado, General Partner at Andreessen Horowitz, shares insights from his extensive experience in AI and infrastructure. He dives into the economics of open-source AI and the rising competition between the U.S. and China in technology innovation. Martin also tackles the challenges of model collapse, the importance of data moats, and the evolving dynamics of SaaS investments with non-technical founders. The conversation highlights the complexities of integrating AI in business while navigating regulatory hurdles and user expectations.
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LLM Development Difficulty
- Building large language models (LLMs) might be easier than portrayed.
- DeepSeek's relatively quick and inexpensive development of a sophisticated model challenges the narrative of extreme difficulty.
Model Fragmentation
- The reinforcement learning with human feedback (RLHF) applied during post-training could lead to model fragmentation.
- Different models might excel in specific domains rather than converging on the same capabilities.
Market Fragmentation
- AI model markets are fragmenting from a business perspective, with different companies leading in specific applications.
- This fragmentation is driven by large market sizes and rapid growth, allowing companies to focus on niches.