A16Z · 11 August 2026 · Investment Thesis

Some Simple Economics of Open versus Closed AI

A16Z

Christian Catalini argues that open-weights AI models won't reduce total innovation investment—only redirect it. Drawing on historical precedent (Great Exhibition, Human Genome Project, AT&T's transistor licensing), he shows diffusion strengthens complementary assets and follow-on work more than IP protection drives initial R&D; the real battle is over who captures value and where capabilities get built.

Read the full post on A16Z ↗

Topics: AI (Horizontal)

Published by A16Z · their site ↗

More from A16Z

SandHill indexes 800+ venture capital blogs and newsletters and sends the best of them every Sunday. Browse the sources · browse by topic · read the blog.