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AI is changing how companies are built and how venture firms operate, forcing faster decisions, clearer judgment, and new ways of working. In this exclusive conversation, Ben Horowitz shares how Andreessen Horowitz adapts to that shift. He explains why managing GPs is different from running a company, how investors are evaluated at the moment of decision rather than years later, and why verticalized teams help the firm scale without internal politics. Ben also breaks down the current AI cycle, from treating AI as a new computing platform to why application design and model orchestration matter more than raw model size. He discusses the return of M&A and why today’s AI market reflects real demand, not just inflated valuations. Timecodes: 0:00 – Introduction 1:33 – Managing GPs vs. companies 4:33 – Framework for evaluating GP performance 6:23 – Verticalization strategy & firm structure 10:14 – Culture and staying in the details 12:46 – How to identify the right markets 17:49 – Mission: giving people a shot 21:28 – M&A landscape opening up 22:09 – Why foundation models alone aren't enough 25:46 – Ownership and the future of VC 29:03 – Why AI will produce more winners than previous technology cycles 32:01 – Rapid-fire personal questions Resources: Follow Ben on X: https://twitter.com/bhorowitz Follow Jen on X: https://twitter.com/jkhamehl Read Justine’s piece ‘There is No God Tier Video Model’: https://a16z.com/there-is-no-god-tier-video-model-but-there-is-something-better Stay Updated: If you enjoyed this episode, be sure to like, subscribe, and share with your friends! Find a16z on X :https://twitter.com/a16z Find a16z on LinkedIn: https://www.linkedin.com/company/a16z Listen to the a16z Podcast on Spotify: https://open.spotify.com/show/5bC65RDvs3oxnLyqqvkUYX Listen to the a16z Podcast on Apple Podcasts: https://podcasts.apple.com/us/podcast/a16z-podcast/id842818711 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.
"You know, if you you want to change the world, you have to believe you can change the world. What you're really trying to find is are they literally the best in the world at a thing, and that's always..."
"you manage a group of GPS because and and particularly what's different about managing GPS versus a company and and what's the same? >> Yeah. No, no, it's pretty different than a company um in that yo..."
"accountability because one question had come up over you know when to promote the right people when to manage out the right people and and ultimately you know the vertical levels are making decisions ..."
">> Maybe just to to focus in on verticalization because verticalization I think was probably one of the seminal points in the history of the firm and changing the structure of it. Um and you and Mark ..."
"differently. How do you stay on top of the details right? How do you hear all this? How do you find the settle but without also micromanaging? Because I I think there's also the creative sort of proce..."
"is is how do we know these are the right verticals and then h how um maybe give some examples of vertical ideas that you've resisted to start but maybe sound good on it on this premise but doesn't eit..."
"the best thing society can do for a person is give them a a shot. Give them a shot at life, a chance to contribute, a chance to do something larger than themselves and make the world a better place. T..."
">> It seems like little tech emanate uh is opening back up. Uh what's your view on on whether that is here to stay and whether that might actually expand to to larger opportunities as well? AI is such..."
"back uh say three or four years, I think people believe that you know there would be the big foundation models would be these giant brains that could do anything um better than anybody. Uh it has not ..."
"actually to the future of VC uh investing which is is very related. So some believe leaner, more efficient businesses will allow founders to retain more on the cap table. Do you worry about that at al..."
"multiple winners in AI, why did prior um cycles of technology not play out the same way? I.e. Why were there only Google, Amazon, you know, a concentration of a small number of winners in those produc..."
">> I'm going to ask you a few fire uh round lightning round questions, Ben, and then we'll close out here. Uh, what will be your most played song on Spotify rap this year? >> Uh, so I think it's um th..."