a16z's Martin Casado: AI is the first tech to turn capital directly into capability
a16z · x · 2026-08-21
a16z partner Martin Casado argues that AI is the first technology where capital directly translates into capability. By investing in RL environments or data labeling, one can improve a model's specific skills.
However, Casado highlights the unknown trade-offs and "jaggedness"—putting in $10 might yield $9 back, but could also degrade other capabilities. This contrasts sharply with traditional software engineering, where heavy investment often leads to failure after long delays.
Related event: a16z's Martin Casado: AI Turns Capital Into Capability Like Never Before(5 posts)→
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