Raghuram: AI bottlenecks have shifted from models to physical infrastructure
Raghu Raghuram · Why Top Founders Are Racing Into AI Infrastructure · Aug 28, 2026 · at 2:21
Raghu Raghuram (former VMware CEO and a16z partner) explains the thesis behind a16z's Machine Age Fund, focusing on physical infrastructure constraints in AI.
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“What we have seen over the last three years is the steady increase of the capabilities of the models. Where the model is no longer the bottleneck. And in fact, using AI, these models are getting better faster and faster and faster. Now the bottleneck is all what I call south of the model.”
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