Matt Bornstein is a Partner at Andreessen Horowitz (a16z). He shares his perspective on the small cohort of Silicon Valley AI startups executing effectively and highlights Hedra's velocity.
“I think there's a relatively small set of companies in Silicon Valley right now that Get AI, building AI-native products, and just, like, work their butts off and ship products at high velocity. That's kind of the magic recipe right now, I think, and there's, you know, maybe a dozen teams, you know, in Silicon Valley, or two dozen teams that are actually doing that right now, and, like, Kedro's definitely one of them, so we, we've just been so blown away.”
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More from Matt Bornstein
PredictionOpen · timeframe Jul 2030
Bornstein: AI developer tools will increase, not shrink, software engineering headcount
“I think the best way to think about this is simply that we're going to have more developers. I think it's very unlikely that like we're going to shrink development teams because we have amazing new tools. Like that's just kind of not how these markets have wor…”
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Bornstein: Synthetic data will not produce self-improving AI models
“The question is, like, does this lead to sort of, like, a self-improving utopia of models or not? And I think we have some pretty strong opinions on the not side of that.”
Matt BornsteinJul 21, 2025▶ 41:48The Future of Software Development - Vibe Coding, Prompt Engineering & AI Assistants
AssertionNot checkable as stated
Bornstein: AI cannot solve legacy code migration due to lost context
“AI may be able to transpile, you know, COBOL to Java, but there's a huge amount of context in what went into creating that COBOL code that's been totally lost, right?”
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Bornstein: Most current commercial AI agents are just weekend demos
“Most of what we're seeing in the market now is like, is not the decade version of this problem. It's like the weekend demo version of this problem.”
Bornstein: Enterprise buyers force AI vendors into GPU cost-plus pricing
“In practice, I think most buyers are actually pretty sophisticated about what's going on under the hood. And to your point, they know it's like pretty simple stuff happening. And so what does it cost you to run all these GPUs? And we'll pay you some premium ov…”
Bornstein: Most AI startups do not understand their value creation yet
“And the reality is most AI companies don't know what value they're generating yet. Like this is like so new and so nascent that it's like, hey, we're just going to charge something that we're not going to lose money on.”
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