The a16z Show

The Hidden Economics Powering AI

Episode Summary

In this episode, Jen Kha, Head of Investor Relations, and David George, General Partner, discuss how late-stage private markets are evolving as AI reshapes scale, capital intensity, and growth timelines. They explain why AI-driven companies are staying private longer, how infrastructure spending is changing return profiles, and what this moment means for durability, value creation, and long-term outcomes in private markets.

Episode Notes

In this episode, Jen Kha, Head of Investor Relations, and David George, General Partner, discuss how late-stage private markets are evolving as AI reshapes scale, capital intensity, and growth timelines. They explain why AI-driven companies are staying private longer, how infrastructure spending is changing return profiles, and what this moment means for durability, value creation, and long-term outcomes in private markets.

Timecodes:

0:00 — Introduction

04:21 — The Market Opportunity for AI

26:48 — Pricing, Monetization, and Cash Burn

43:15 — Companies Staying Private Longer

51:30 — Portfolio Composition and Construction

57:18 — Team Culture and Collaboration
 

Resources:

Follow Jen Kha on X: https://x.com/jkhamehl

Follow David George on X: https://x.com/DavidGeorge83

 

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Not an offer or solicitation. None of the information herein should be taken as investment advice; Some of the companies mentioned are portfolio companies of a16z. Please see https://a16z.com/disclosures/ for more information.  A list of investments made by a16z is available at https://a16z.com/portfolio.