Why Coding is The First Undeniable AI Use case | a16z
Agentic coding is the first AI use case with undeniable product-market fit, while foundation models commoditize.
“I don't think foundation models are a product. I don't think a chatbot is a product. I think the value will be further up.”
On the a16z podcast, analyst Benedict Evans argues that agentic coding has become the first AI application with clear product-market fit, with customers pulling it out of vendors' hands and driving a capacity/capex supply crunch. He contends foundation models and chatbots will commoditize, pushing durable value 'further up' the stack. This matters as a framing of where AI value accrues and why coding is currently the industry's narrow focus.