AI is How America Builds Again

Policymakers have spent years talking about rebuilding America’s industrial base, reshoring critical supply chains, strengthening defense production, and reducing U.S. dependence on China. But recognizing the need to build is not the same as having the ability to do it.Erin Price-Wright, general partner on Andreessen Horowitz’s American Dynamism practice, joins the AI Policy Brief to make the case that AI isn’t just a software story. It’s the defining factor in the sectors that determine whether the U.S. can build, power, and defend itself in the decades ahead.She and Matt Perault discuss how AI can help make the math work for building in the U.S. again—from accelerating mine permitting and coordinating complex industrial projects to designing factories, lowering the cost of automation, and bringing robotics to more factory floors.They also discuss where policy needs to catch up: the laws and regulations that make it too hard and slow to build new factories in the U.S. and defense procurement that still favors incumbents over startups.Finally, they discuss how the debates over data centers and jobs will shape whether America’s reindustrialization effort succeeds.The takeaway: if the U.S. gets the policy environment right, AI can strengthen the industrial base, help create new kinds of jobs, and give America a powerful competitive advantage.Topics covered:00:00: Intro00:54: Erin’s work investing in AI for the physical world01:47: Why AI and reindustrialization are converging now03:07: Applying AI to mining and critical minerals08:28: What Ukraine reveals about defense production18:13: How startups are breaking into government markets20:16: Bringing a factory mindset to critical sectors and complex systems24:39: How robotics can expand factory automation30:22: What still makes it too hard to build in the U.S.32:49: Using AI to design better, cheaper manufactured goods35:05: Why data centers matter for reindustrialization39:46: How compute could help modernize the grid and lower costs for consumers42:50: Why AI could create new industrial jobsResources:Subscribe to the a16z AI Policy Brief: https://a16zpolicy.substack.com/Follow Matt Perault: https://x.com/MattPeraultFollow Erin Price-Wright: https://x.com/espricewrightPlease note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit a16zpolicy.substack.com