Andreessen Horowitz partner Anjney Midha recently outlined the "Theory of Well," arguing companies that control chokepoints in the AI stack will capture lasting value and pricing power. The firm raised a $4.25 billion AI-focused fund in 2024 and points to infrastructure plays such as Nvidia, CoreWeave and Scale AI as examples, signaling a shift in venture interest toward infrastructure over applications.
Key Points
- 1Control chokepoints in the AI stack, including GPUs, proprietary training data, or orchestration layers
- 2Grant owners durable pricing power and potential outsized returns across the AI infrastructure ecosystem
- 3Advise founders to prioritize scarce infrastructure, middleware, or data assets to attract venture funding
Scoring Rationale
High industry relevance and credible a16z sourcing, offset by limited empirical proof and not wholly novel insight.
Sources
Public references used for this report.
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