a16z: AI makes capital more productive than ever before

a16z · x · 2026-08-22

a16z's Martin Casado highlights how AI has drastically increased capital productivity. He cites a famous model built by a team of 20 people costing over $2 billion, noting that in the history of engineering, 20 people have never been able to productively utilize $2 billion. Casado argues that a major story of this wave is the ability to apply large amounts of money productively in short timeframes to solve problems.

Related event: a16z: 20-Person Team Spent $2B Training a Model(2 posts)→

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