A16z Podcast

Key Takeaways

Future historians will look back on this era and wonder why we needed a license to cut hair but not a license to own and operate a computer – the most powerful device ever created
There is a power law for M&A just like there is a power law for startups: the best M&A can completely transform a company, but only about 10% of deals ever work out
“The actual way of regulating big companies is with a thousand startup piranhas, not by regulation.” – Balaji
- A large acquisition signals the big company’s inability to build the product in-house, while also fueling the startup ecosystem by attracting talent and investment to that market vertical and spurring competition.
The ultimate form of American capitalism is exploiting the rules in a clever way
Balaji’s global pro-tech legislative playbook:
- Identify the optimal legal framework for each market and vertical
- Develop standardized, modular policy templates for all 50 U.S. states and 190 sovereign nations
- Build a government-relations team to establish and scale relationships across jurisdictions
- Identify and engage pro-tech policymakers (with emphasis on small, builder-friendly states) and deploy capital into markets that implement the model legislation
The greatest risk to AI innovation is arbitrary regulation; allowing market dynamics to operate freely will accelerate progress and distribute benefits broadly
The question we all should be asking is, how do we build competition against the monopoly that is the US government

There’s been a wave of M&A deals lately - Meta and Scale, Windsurf and Google - and a lot of it points to something bigger: how regulation, capital, and innovation are colliding in 2025.

In this episode Erik Torenberg brings together Steven Sinofsky, former Microsoft Executive and Balaji Srinivasan, founder of the Network School, and author of the Network State to break it all down.

From acquihires to “acquifires,” from FTC crackdowns to the deeper battle between the state and the network, this is a sharp conversation on the future of tech and power.

Resources

Find Balaji on X: https://x.com/balajis

Find Steven on X: https://x.com/stevesi

Learn more about The Network State: https://thenetworkstate.com

Learn more about The Network School: https://ns.com

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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.

Claire Clark

The AI-powered Podcast Player