USVC Partner: AI Infra Buildout Largely Finished, Value Shifts to App Layer

MartinGTobias · x · 2026-07-22

Mike Mignano, General Partner at Union Square Ventures, stated in a recent interview that the AI infrastructure buildout is largely finished, and value is now shifting to the application layer, much like the transition from broadband to internet apps.

He argues that frontier labs cannot easily capture the app layer because specialized startups consistently beat incumbents at solving hard, regulated, and context-rich problems. His advice for builders: move first, stay mission-driven, and spend tokens like the strategic advantage they are.

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