Who Will Own the Internet? a16z’s Chris Dixon on AI and Crypto

Key takeaways

The convergence of AI, crypto, and hardware signifies the dawn of a new era in the internet, one that is potentially more decentralized and innovation-driven.
The traditional economic covenant of the internet is evolving; AI may disrupt existing models by reducing the need for traffic-based revenue.
Innovative models that leverage blockchain technology offer creators a fairer way to monetize their work compared to traditional platforms.
Technological progress unfolds through phases, where initial adaptations lead to new paradigms, offering exciting possibilities for creativity.
A concerted effort is required to ensure the internet remains a space for innovation, avoiding centralization under a few dominant entities.

Summary

The Intersection of AI, Crypto, and Innovation

In this episode, Chris Dixon and David George discuss how AI, crypto, and new hardware represent a monumental shift in the internet landscape. The conversation highlights the synergy between these technologies, suggesting that they not only complement one another but also herald a new era that prioritizes decentralization and innovation. Dixon draws parallels with past technology waves, emphasizing the need for new economic models that empower creators.

The Changing Economic Covenant of the Internet

A central theme in the discussion is the historical covenant of the internet, where creators traded content access for traffic. This dynamic is increasingly challenged by AI tools that may provide answers directly, bypassing the need for website traffic. Dixon raises concerns about a potential future dominated by a few AI platforms and emphasizes the importance of creating new incentive structures that ensure broad access and support for small creators.

New Models for Creators and Decentralization

Dixon introduces innovative concepts like Story Protocol, which enables creators to register intellectual property on a blockchain, ensuring transparent and fair monetization. This reflects a growing trend towards composing new economic models that allow for ownership and equitable revenue sharing, contrasting sharply with traditional social media platforms that monopolize creator income.

Phases of Technological Progress

The hosts outline a framework for understanding the stages of technological adoption. They discuss initial 'schumorphic phases'—where new technologies imitate old forms—transitioning to 'native phases' where entirely new paradigms can emerge. This paradigm shift, they argue, will encompass not just new media forms but fundamentally new ways of interacting and creating.

The Future Landscape of the Internet

Dixon warns of the dangers associated with allowing a few companies to dominate the digital landscape and advocates for a vision of the internet that redistributes power and facilitates innovation at the edges. Each participant stresses the necessity of rallying around decentralized architectures—such as those supported by cryptocurrency—to promote a vibrant and equitable online ecosystem.

Show notes

Technology doesn’t grow in isolation—it evolves in waves. Just as mobile, cloud, and SaaS shaped the internet of the past 20 years, so too could crypto, AI, and new hardware usher in an era of the internet that’s pro-innovation, pro-startup, and pro-creator.

Speaking with a16z Growth General Partner David George, a16z crypto Founder and Managing Partner Chris Dixon breaks down his vision for a new internet, from using crypto to decentralize AI infrastructure and kickstart network effects, to why AI will be this era’s native form of media just as film was in the 1930s. He also explores why the internet’s original covenant—where content creators traded free access for search traffic—is breaking today, and how a better internet could introduce entirely new business models for creators.

Right now, we have a choice to make: will the next era of the internet be shaped by a handful of centralized players, or transformed into an open ecosystem where power and control flow to creators across the globe?

Resources:

Watch the conversation here: https://youtu.be/gioxu1CVjhM

Read more, including the full transcript, here: https://a16z.com/ai-crypto-internet-chris-dixon/

Chris’s recent article on blockchain innovation: https://a16zcrypto.com/posts/article/blockchain-ai-internet/

Find Chris’s book, Read Write Own: Building the Next Era of the Internet:

Penguin Random House: https://www.penguinrandomhouse.com/books/744504/read-write-own-by-chris-dixon/

Penguin UK: https://www.penguin.co.uk/books/459860/read-write-own-by-dixon-chris/9781804949245

For more resources on AI & crypto visit: https://a16zcrypto.com/posts/?tag=ai-crypto,web2-to-web3

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