Ben Horowitz discusses how a16z has restructured its venture approach to meet the pace of AI innovation, emphasizing decision-making clarity over long-term outcomes and using verticalized teams to maintain agility. The firm evaluates investors based on judgment at the moment of decision, fostering accountability without bureaucracy. With AI acting as a new computing platform, success increasingly depends on application design and orchestrating multiple models rather than relying solely on model size. Real-world use cases demand deep behavioral insight, and benchmarks often fail to capture true performance. Meanwhile, M&A is resurging as companies race to integrate AI capabilities, driven by genuine market demand. Founders now have more leverage due to diversified funding sources, enabling faster company building through new accelerators and tools. This cycle stands apart from previous ones due to broader applicability and rapid iteration, positioning AI as both a strategic and operational inflection point for startups and investors alike.