a16z's Raghu Raghuram and Guido Appenzeller sit down with Playground Global General Partner and former Intel CEO Pat Gelsinger to discuss the next wave of semiconductor innovation and the physical constraints shaping the AI buildout. Drawing on his experience designing Intel's 386 and 486 processors, Pat explains how AI could transform chip design, but also why faster design alone won't solve the industry's biggest problems. They examine the bottlenecks in manufacturing, memory bandwidth, advanced packaging, and power, and why today's explosion of specialized AI chips may eventually consolidate around a smaller number of architectures. They also discuss the potential for new memory technologies, the shift from copper to optical networking, and why energy capacity could become a major constraint on AI growth. Finally, they revisit Pat's VMware years to ask what virtualization might look like when infrastructure is built for agents rather than humans. Resources: Follow Pat Gelsinger on X: https://x.com/PGelsinger Follow Raghu Raghuram on X: https://x.com/RaghuRaghuram Follow Guido Appenzeller: https://x.com/appenz 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.