a16z Co-Founder: Why is everyone willing to pay up to $300 for AI subscriptions? a16z co-founder Marc Andreessen recently shared on a podcast that the rise of AI is not only faster than the internet but also more profitable. He reflected on how the internet took decades to become widespread, from laying fiber optic cables to the rollout of mobile phones and broadband, gradually building today’s global digital infrastructure. But now, AI doesn’t need to rebuild networks or deploy hardware terminals—just one download button, and it can enter the lives of 5 billion users worldwide at “light speed.” As the barriers to deploying models lower, consumer AI applications are rapidly expanding with a “pay-per-use” model. Marc pointed out that AI subscription prices are currently on the low side, and even if monthly fees rise to $200–$300 in the future, demand will still outstrip supply. Why? Marc believes users are genuinely gaining direct, quantifiable value from AI. Individuals use AI to write copy, code, and generate content, significantly boosting productivity; businesses use it to improve customer service ratings, marketing conversions, and user retention, directly driving revenue growth. At the same time, the underlying costs of AI are dropping dramatically, with unit compute power experiencing “super deflation,” while monetization capabilities are only getting stronger. This “low cost x high value” gap is driving AI to become the next generation of high-margin infrastructure. Marc believes we are still just at the starting point of AI’s true explosion.