a16z on Why Infrastructure Is AI's New Bottleneck

a16z · youtube · 2026-08-28

a16z partners Ben Horowitz and others discuss the new Machine Age fund and the logic behind AI infrastructure buildout. They argue the bottleneck in AI is shifting from models to the underlying stack: chips, memory, networking, power, cooling, and data centers. The discussion highlights surging hyperscaler CapEx, critical components booked out to 2028, and the exponential compute demand from new reasoning and agents. They also analyze why founders are returning to hard tech problems in hardware and systems to rebuild the computing stack for the Machine Age.

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