The $3 Trillion AI Coding Opportunity

The a16z Show

a16z

Science, Innovation, Business, Entrepreneurship, Culture, Disruption, Software Eating The World, Technology

4.4 • 1.1K Ratings

🗓️ 9 December 2025

⏱️ 38 minutes

🔗️ Recording | iTunes | RSS

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Summary

Originally published on the a16z Infra podcast. We're resurfacing it here for our main feed audience. AI coding is already actively changing how software gets built. a16z Infra Partners Yoko Li and Guido Appenzeller break down how "agents with environments" are changing the dev loop; why repos and PRs may need new abstractions; and where ROI is showing up first. We also cover token economics for engineering teams, the emerging agent toolbox, and founder opportunities when you treat agents as users, not just tools.

Transcript

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0:00.0	AI coding is the first really large market for AI.
0:05.0	When do we say, this is all agents?
0:08.0	We just at the end of the value chain,
0:10.0	or like, does this work or not work?
0:12.0	Click yes or no.
0:14.0	Agents, more than ever, need an environment to run these things.
0:17.0	Context engineering for both humans and agents.
0:20.0	Every single part of it is getting disrupted.
0:22.6	It's not that there's just somebody writing code,
0:25.7	like your classical developers being disrupted,
0:27.1	but everybody along the value chain.
0:29.8	We're resurfacing an episode from the AI plus A16Z podcast
0:33.4	that we think deserves a wider audience.
0:36.2	A16Z partners Yoko Lee and Guido Appenzeller make the case that AI coding is the first truly massive market for AI,
0:42.3	potentially worth trillions.
0:44.3	They break down what's changing in the dev loop, where ROI is showing up first and what founders should build next.
0:50.3	Hope you enjoy.
0:52.3	So, Yoko, we just launched this, I think, amazing new dev stack for the AI coding environment.
1:00.9	And I'm really, very excited about this.
1:02.6	Yeah.
1:03.1	I mean, and let me start with a very high out of pitch why I think this is so incredibly exciting.
1:08.2	I think AI coding is the first really large market for AI, right? I mean,
	...

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