Is AI the Fourth Pillar of Infrastructure?
Infrastructure doesn’t go away — it layers. And today, AI is emerging as a new foundational layer alongside compute, storage, and networking.
Erik Torenberg interviews a16z’s Martin Casado, Jennifer Li, and Matt Bornstein breaking down how infrastructure is evolving in the age of AI — from models and agents to developer tools and shifting user behavior.
We dive into what infra actually means today, how it differs from enterprise, and why software itself is being disrupted. Plus, we explore the rise of technical users as buyers, what makes infra companies defensible, and how past waves — from the cloud to COVID to AI — are reshaping how we build and invest.
Timestamps:
(00:00) Introduction
(01:49) Defining Infrastructure in the AI Era
(03:15) The Fourth Pillar: AI's Role in Infrastructure
(06:01) Historical Context and Evolution of Infrastructure
(08:20) The Impact of AI on Software Development
(10:18) Investment Strategies and Market Dynamics
(17:02) Developer Tools and AI Integration
(20:57) Defensibility in the AI Landscape
(22:16) Founders' Intuition and Industry Progress
(22:26) Defensibility in AI Infrastructure
(24:00) Expansion and Contraction Phases in the Industry
(24:35) The Role of Layers in Market Consolidation
(27:43) The Future of AI Models and Specialization
(29:27) The Decade of AI Agents
(29:54) Context Engineering and New Infrastructure
(34:23) The Evolution of Software Development
(42:13) Horizontal vs. Vertical Integration in AI
(43:54) Conclusion and Final Thoughts
Resources:
Find Martin on X: https://x.com/martin_casado
Find Jennifer on X: https://x.com/JenniferHli
Find Matt on X: https://x.com/BornsteinMatt
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Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures.
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