Andreessen Horowitz

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The Maker of Non-Text AI Model Jev Valued at $7.5B Just Weeks After Launch

TypeSafe AI, maker of the non-text decision model Jev, raised $870 million at a $7.5 billion valuation on 9 October, led by Andreessen Horowitz with Sequoia and DCVC. The seed price behind the 37.5x step-up was struck more than a year ago, the round closed 25% below the $10 billion reported in September, and at list price a trillion tokens a day earns about $15 million a year. We set out the arithmetic, the conflicting Fortune 500 figures and what the round means for teams buying Jev.

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a16z’s Olivia Moore on the State of Consumer AI

Andreessen Horowitz partner Olivia Moore says almost all consumer AI is really prosumer AI. We break down her TechCrunch interview and a16z’s seventh Top 100 Gen AI Consumer Apps report: the new spending data, why the top 1% of payers average $903 a month, how subscriptions crowd out ads and transaction fees, what ChatGPT’s ad revenue and Instinct’s volume imply, and which consumer categories AI has still not reached.

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The Ugly Economics of Consumer AI

Muse, Dots and Instinct made consumer AI look hot again, but payment data says only 2% to 3% of US households pay for AI while a Menlo survey says 55% of users do. We reconcile the sources, correct a Netflix comparison that does not add up, explain why running costs are the real problem and compare how Meta, OpenAI, Instinct and Anthropic plan to make money.

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