Why Now is the Time for the App Layer | Why Startups Should be TokenMaxxing | Mike Mignano, USV

The AI landscape is transitioning from a massive infrastructure build-out to a proliferation of application-layer software. While foundational labs hold significant compute advantages, the next wave of value creation lies in specialized, human-aligned agents and "harnesses" that integrate deeply with user workflows. Success in this era requires a thesis-driven venture approach, prioritizing founders who can "obliterate" existing markets rather than merely automating them. As AI agents gain the ability to handle personal tasks, trust and incentive alignment become critical, potentially favoring smaller, mission-driven startups over large incumbents. Meanwhile, the energy sector is becoming a vital, capital-intensive component of the AI stack, driving innovation in portability and localized data centers. Ultimately, the most successful ventures will be those that leverage unique domain expertise to solve complex problems, proving that startups can still compete against hyperscalers.