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Technology

AI as Fundamental Platform Shift

Timeframe: Current (2024-2027) for early adoption, 5-10 years for full transformation

What's Changing

AI is becoming a platform shift equivalent to the internet and mobile, fundamentally changing how software is built and used

Driving Forces

Large language models reaching human-level capability in many domains

Democratization of AI development tools

Massive venture capital investment in AI startups

Consumer adoption of AI-powered applications

Winners

  • AI-first startups building on the new paradigm
  • Companies that successfully integrate AI into existing products
  • Infrastructure providers enabling AI applications
  • VCs investing early in the platform shift

Losers

  • Companies slow to adopt AI capabilities
  • Traditional software that becomes obsolete
  • Workers whose jobs are automated
  • Investors who miss the platform shift

How to Position Yourself

1

Build AI-native products rather than adding AI features

2

Focus on problems that AI uniquely solves

3

Invest heavily in AI talent and capabilities

4

Create network effects around AI-generated data

Early Signals to Watch

Mainstream consumer adoption of AI toolsAI-first companies achieving massive valuations quicklyTraditional companies restructuring around AIRegulatory frameworks emerging for AI

Example Implementation

A16Z allocating significant fund resources to AI investments across applications and infrastructure, treating it as generational opportunity

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