The a16z Show The a16z Show

How Enterprise AI Really Gets Deployed

Jul 31, 2026 · 1h 20m

Summary

Sarah Wang and Kimberly Tan interview Decagon co-founders Jesse Zhang and Ashwin Srinivas about shifting 90% of their AI stack to open-source models for better latency and control. They discuss how fine-tuned smaller models outperform frontier models on specific tasks, debunking the idea that apps are merely thin UIs. The episode explores Decagon’s product-led growth, the evolution of forward-deployed engineers, and why enterprise software will endure even with AGI.

Topics discussed

Intro: AI agents as the front door of business Decagon's origin and the shift to open-source models Fine-tuning smaller models for cost, speed, and accuracy Enterprise challenges: evals, governance, and model risk In-house talent strategy and building internal tooling Tokenomics: optimizing for latency and unit economics Application layer vs. model layer: where the moat lies The trap of forward-deployed engineers in AI products Productizing customer insights and scaling the core product AGI impact on jobs and the 'Duet' agent for ops Decagon's moat: infrastructure and legacy system integration Sales-led growth and navigating enterprise organizations Expanding beyond customer support to broader workflows Product roadmap and the limits of current model capabilities Hiring trends and the A16Z office culture International expansion and vertical vs. horizontal markets The future of CRMs and data records in an agentic world Founders using AI agents for brainstorming and decision-making The role of X (Twitter) in shaping AI narratives and hiring Jevons Paradox: AI increases support volume, not just efficiency
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