a16z: AI revenue runs on subscriptions not ads, and consumer agent apps are still very early
omooretweets · x · 2026-10-05
a16z partner omooretweets adds context to the Consumer AI ranking: the vast majority of AI revenue comes from subscriptions and usage — an inversion of the ad-driven pre-AI internet — suggesting consumers may be unwilling to pay directly for software, which explains low average engagement.
On agents, he argues we're still very early: Muse's early downloads were a fraction of Threads' launch, and users of agent products focus mainly on coding and automation workflows, with travel emerging as another big category.
Related event: a16z's 7th Top 100 Gen AI Consumer Apps Adds First Revenue Leaderboard(19 posts)→
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