a16z's Martin Casado: AI is the first tech with immediate $10 ROI

a16z · x · 2026-08-22

In a detailed interview, a16z GP Martin Casado discusses AI as the first technology where a $10 input yields a reliable return, contrasting it with the long, uncertain cycles of traditional engineering. The conversation covers the value of experience, the economics of massive capital deployment on single models, and the firm's decision to go all-in on AI seven years before GPT. Casado also addresses why private capital grows the total addressable market and critiques the RSI narrative.

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