Ben Horowitz on AI Infrastructure, Economics and The New Laws of Software

The current technological landscape is undergoing a fundamental shift where traditional business axioms—such as the inability to scale through capital injection or the permanence of customer lock-in—no longer apply. As AI lowers the barrier to entry, legacy companies face existential threats, necessitating a pivot toward efficiency and distinct value propositions to avoid obsolescence. The infrastructure required to support this transition, including electricity, rare earth minerals, and manufacturing capacity, remains a critical bottleneck that demands immediate, large-scale investment. Furthermore, the rise of AI-generated content and sophisticated fraud necessitates a new cryptographic layer of trust, likely rooted in blockchain technology, to verify human identity and secure economic transactions. Despite the rapid disruption of traditional white-collar roles, historical precedents suggest that technological evolution consistently expands human potential, ultimately creating new needs and higher standards of living.