Appenzeller: AI compute share of startup capital will decline over time
Guido Appenzeller · The True Cost of Compute · Sep 1, 2023 · at 3:07
Guido Appenzeller, Andreessen Horowitz venture partner, addresses early-stage AI startups spending over 80% of their funding on compute, predicting that traditional software headcount and enterprise features will broaden cost structures.
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“Over time, I would expect this to normalize a little bit, and it's mostly as you go more from the core technology that you're building in very early days towards more a complete product offering, right, there's just a lot more Boxes to check and, you know, features to implement and all the administrative parts of the application if you're getting to the enterprise. So probably you'll have more normal software development. That's not AI, right? A classic software development happening. You'll probably also have a larger head count of people that, that I, that you have to pay. So at the end of the day, I would expect as a percentage that will go down over time, right?”
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