a16z's Alex Danco and Moses Sternstein on the AI buildout's missing supply response, and the one category where US production is actually shrinking: Moses: "You would think with this epic run on prices, which is what we've had, that you would see an increase in output. That's natural what supply and demand would say. You see it to some extent, but not really. "There's really two levers you can pull. There's utilization, you can get more with what you got, and you can build more…

a16z@a16z10h ago

Power is one of the AI buildout's biggest bottlenecks, and US capacity to make electrical equipment is shrinking US factory capacity since 2019: - Comms equipment: +110% - Semis: +77% - Computers: +16% - Electrical equipment: -9% Electrical equipment prices are up 69%, the biggest jump of the four categories Charts of the Week: https://www.a16z.news/p/charts-of-the-week-attention-is-all