Good morning 👋
And happy hump day.
a16z released their list of big ideas they are investing in going into 2025, so I’ve spent most of the past day making sure we’re thinking the same way.
Here are the biggest takeaways from that list.
Today’s highlights
The biggest investment areas for a16z partners in 2025
Some thoughts on Moore’s Law
Why winners keep winning
Proof that we learn more when we aren’t looking learning through screens
TOP
a16z’s big ideas for 2025 👀
a16z surveyed 50 of their partners and asked them to preview one big idea that will spur innovation in 2025.
Here’s what they had to say:
American Dynamism
Nuclear resurgence: AI data centers will drive unprecedented demand for nuclear power, reviving decommissioned plants and spurring new reactor construction.
Hardware-software jobs: Growing demand for engineers who can bridge hardware-software gaps in manufacturing, robotics, and industrial automation.
Space frontier: Starship’s reusability advances will enable lifting larger payloads to space, from data centers to biomedical labs.
Bio + Health
Common disease focus: Biotech startups will return to targeting major diseases, inspired by GLP-1 success.
Health tech democratization: AI and wearables will give patients direct access to health insights.
AI super staffing: AI models will help address healthcare staffing shortages by automating administrative work.
Consumer
Specialized AI video: Video generation will become specialized for specific uses with better quality.
AI memory banks: People will use AI to process their digital footprint for personal insights.
Personalized knowledge work: AI will learn to match individual writing styles and workflows.
Qualitative data analysis: AI will enable integration of unstructured data with quantitative analysis.
Crypto
AI wallets: AI systems will manage their own crypto wallets and assets.
Autonomous chatbots: Decentralized autonomous chatbots will emerge as independent entities.
Proof of personhood: New systems will help verify human identity in an AI world.
Crypto app stores: New distribution channels for crypto apps will emerge.
Enterprise + Fintech
AI-powered compliance: Regulation-specific LLMs will simplify compliance processes.
Service industry transformation: AI will help service businesses become more scalable.
AI-native interfaces: New UI/UX paradigms will emerge for AI-powered software.
Games
AI-native storytelling: A next-generation Pixar will emerge using AI for interactive experiences.
Living AI companions: AI companions will develop more engaging personalities with virtual social networks.
Faceless creators: AI will enable new forms of content creation with hidden identities.
Growth-Stage Tech
Search disruption: Google’s search monopoly will erode as AI chatbots gain market share.
Sales renaissance: AI automation will lead to increased hiring of sales representatives.
Infrastructure
AI computing centers: Nations will race to build massive AI compute facilities.
Edge AI growth: Small, on-device AI models will become dominant for many applications.
AI reasoning progress: Despite limitations, AI will advance in math, physics, and coding.
Read more: https://a16z.com/big-ideas-in-tech-2025/
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LINKS
📈 “Most Important Graph Ever Conceived”: American businessman and venture capitalist Stephen Jurvetson laid out over a century of Moore’s Law on computational power advancements in a post on X
🙌 Marc Andreessen’s Guide to Personal Productivity: Shaun Maguire posts
😖 Hard Changes Made at Brex: The founder and CEO of Brex shares the changes made to increase intensity, quality, and speed
🥇 Why Winners Keep Winning: The Matthew effect explains how those who start with an advantage relative to others can retain that advantage over long periods of time
🤝 How to Raise from LPs: Sharing learning and tips from both sides of the table, GPs and LPs
📶 Deal Flow Report: 12/08/24: Enterprise browser security that protects employees when they browse the internet, creating new workflows to make PE investors more efficient with the output, how to detect shoplifting in real-time and reduce internal theft by 28%
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TWEET
HEADLINES
The problem with VCs in defense tech (Yahoo Finance)
OpenAI Startup Fund raises $44M in its largest SPV yet (TechCrunch)
General Catalyst Plans to Buy More Old-School Businesses and Transform Them With AI (WSJ)
Where are all the consumer AI startups—and why aren’t VCs funding them? (Pitchbook)
MEME
POLL
Which of the a16z themes are you most-bullish on investing in over the next 2-3 years?
Thanks for reading this far and giving us a little bit of your attention this week.
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- Clay
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