"This feels like 1996": Why a16z's Martin Casado believes the AI boom still has years to run (General Partner)

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Martin Casado has lived through multiple tech waves—first as a founder, now as a16z’s leading voice on AI and infrastructure. He helped pioneer software-defined networking, then moved from academia to entrepreneurship, and today backs founders building at the frontier of technology as a General Partner at Andreessen Horowitz. In this conversation, Martin shares his unique perspective on the AI boom, his market-first investment philosophy, and why he believes we’re still in the early days of AI’s impact.

We explore:

• Martin’s path from game engines and simulations to investing at Andreessen Horowitz

• Why Martin believes we’re only in “1996” of the AI boom cycle with years to run before any bubble

• Why Martin approaches investing “from markets in” rather than “from companies out”

• Why the AI coding market represents a potential $3 trillion opportunity

• The transformation of Andreessen Horowitz from a small generalist partnership to a specialized 600-person organization

• The concerning dominance of Chinese companies in open source AI models

• Why Martin thinks AGI discussions encourage “lazy thinking” and obscure meaningful conversations

• How World Labs is solving the 3D representation problem that could unlock robotics, VR, and more

Explore the episode

Timestamps

(00:00) Intro

(04:50) Martin’s early career

(08:35) Martin’s shift from academia to founding his own company during an economic downturn

(11:25) The story behind Martin joining Andreessen Horowitz

(17:55) Ben Horowitz’s most impactful advice

(19:49) How Andreessen Horowitz has transformed since 2016

(22:20) Why product experience matters more than technical prowess for infrastructure investing

(26:26) Martin’s market-first investment philosophy

(28:39) Andreessen Horowitz’s framework for assessing founders and startups

(33:14) Why Martin thinks Hock Tan may be the best CEO today

(35:18) The controversy around non-consensus investing in early stages

(38:42) Why today’s AI boom reminds Martin of the mid-’90s tech environment

(44:38) How today’s AI boom differs from 2021’s tech bubble

(47:10) Why the promise of AI in organizations remains largely unrealized

(50:29) How Martin uses AI for coding and as a reading thought partner

(52:56) Why Martin doesn’t use AI for writing

(53:24) Martin’s interest in Eisenhower and historical parallels to today

(55:33) Two equally important paths for AI’s future

(58:33) Why Cursor stood out as the leader in AI coding tools

(01:01:14) The lack of inherent defensibility in AI and how to build moats

(01:03:30) World Labs’ mission to transform 2D images into 3D environments

(01:06:42) 3D’s emerging use cases and why the VR market may expand

(01:11:50) Why Martin isn’t an “AGI guy” and how the term erodes conversation quality

(01:14:59) How seeing AI as a continuum creates room for future products and investment

(01:16:28) The security and regulatory challenges of Chinese open-source AI models

(01:19:23) Final meditations

Follow Martin Casado

LinkedIn: https://www.linkedin.com/in/martincasado/

X: https://x.com/martin_casado

Resources and episode mentions

Books

• The Weirdest People in the World: https://www.amazon.com/WEIRDest-People-World-Psychologically-Particularly/dp/1250800072/

• The Beginning of Infinity: Explanations That Transform the World: https://www.amazon.com/Beginning-Infinity-Explanations-Transform-World/dp/0143121359

• Statistical Consequences of Fat Tails: Real World Preasymptotics, Epistemology, and Applications: https://www.amazon.com/Statistical-Consequences-Fat-Tails-Preasymptotics/dp/B0CD8X5YC5

• The Art of Doing Science and Engineering: Learning to Learn: https://www.amazon.com/Art-Doing-Science-Engineering-Learning/dp/1732265178

• The End of History and the Last Man: https://www.amazon.com/End-History-Last-Man/dp/0743284550

People

• Andy Rachleff on LinkedIn: https://www.linkedin.com/in/rachleff/

• Ben Horowitz on LinkedIn: https://www.linkedin.com/in/behorowitz/

• Marc Andreessen on X: https://x.com/pmarca

• Mike Moritz on LinkedIn: https://www.linkedin.com/in/michaelmoritz/

• John Doerr on X: https://x.com/johndoerr

• Peter Thiel on X: https://x.com/peterthiel

• Hock Tan on LinkedIn: https://www.linkedin.com/in/hock-tan/

• Dwight D. Eisenhower: https://en.wikipedia.org/wiki/Dwight_D._Eisenhower

• Ben Mildenhall on LinkedIn: https://www.linkedin.com/in/ben-mildenhall-86b4739b/

• Christoph Lassner on LinkedIn: https://www.linkedin.com/in/christoph-lassner-475a669b/

• Justin Johnson on LinkedIn: https://www.linkedin.com/in/justin-johnson-41b43664/

• Yann LeCun on X: https://x.com/ylecun

Other resources

• Andreessen Horowitz: https://a16z.com/

• R.I.P. Good Times: https://articles.sequoiacap.com/rip-good-times

• Martin’s post on X about non consensus investing: https://x.com/martin_casado/status/1959485916894167162

• Terra Incognita: https://en.wikipedia.org/wiki/Terra_incognita

• Beware the AI Experimentation Trap: https://hbr.org/2025/08/beware-the-ai-experimentation-trap

• Cursor: https://cursor.com/

• Grok: https://x.ai/grok

• Warren Court: https://en.wikipedia.org/wiki/Warren_Court#Historically_significant_decisions

• CodeX: https://openai.com/codex/

• Genie3: https://deepmind.google/discover/blog/genie-3-a-new-frontier-for-world-models/

• Midjourney: https://www.midjourney.com/

• WorldLabs: https://www.worldlabs.ai/

• Suno: https://suno.com/

• GitHub Copilot: https://github.com/features/copilot

• SB 1047: https://en.wikipedia.org/wiki/Safe_and_Secure_Innovation_for_Frontier_Artificial_Intelligence_Models_Act

• Siesta: https://en.wikipedia.org/wiki/Siesta

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