a16z’s Jen Kha and David George sit down with Accolade Partners’ Aram Verdiyan to discuss how AI is changing the power law of technology investing, why the largest companies can compound advantages in ways that weren’t possible before, and what that means for how investors construct portfolios. They explore why AI may be much bigger than traditional software, with applications reaching into labor, healthcare, transportation, services, and other major parts of the economy. David explains why capital itself can now reinforce an AI company’s advantage by buying more compute, while Aram makes the case that AI should increasingly be treated as a core allocation rather than a satellite position. The conversation also gets into the changing economics of venture and growth investing, how to distinguish real AI traction from early hype, what AI means for legacy software and private equity, and why some of the largest opportunities may still be ahead in robotics, autonomy, healthcare, energy, and physical infrastructure. Timestamps: 00:00 - Intro 00:44 - Why Power Law Is No Longer Just a Venture Thing 01:34 - Every Venture-Backed IPO Combined: Where Does It Go From Here? 03:43 - Rethinking Portfolio Construction from a Blank Sheet 08:27 - Why This Era of AI Is Categorically Winner-Take-All 10:40 - Why Consistency Matters More Than Ever in Venture 20:32 - How Venture Has Structurally Changed Since the 2000s 25:49 - Are We Catching a Falling Knife? LP Sentiment Today 33:39 - The Legacy SaaS Problem: What to Do with the Old Book 39:30 - Why "AI Private Equity" Isn't a Panacea 47:17 - The Real Bottleneck: Data Centers, Chips & the Machine Age Resources: Follow Aram Verdiyan on X: https://x.com/aramverdi Follow Jen Kha on X: https://x.com/jkhamehl Follow David George on X: https://x.com/DavidGeorge83 Stay Updated: If you enjoyed this episode, be sure to like, subscribe, and share with your friends! Find a16z on X: https://twitter.com/a16z Find a16z on LinkedIn: https://www.linkedin.com/company/a16z Listen to the a16z Show on Spotify: https://open.spotify.com/show/5bC65RDvs3oxnLyqqvkUYX Listen to the a16z Show on Apple Podcasts: https://podcasts.apple.com/us/podcast/a16z-podcast/id842818711 Follow our host: https://x.com/eriktorenberg Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see http://a16z.com/disclosures.