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The Little Tech Agenda for AI

Who’s speaking up for AI startups in Washington, D.C.? In this episode, Matt Perault (Head of AI Policy, a16z) and Collin McCune (Head of Government Affairs, a16z) unpack the “Little Tech Agenda” and latest in AI policy - why AI rules should regulate harmful use, not model development; how to keep open source open; the roles of the federal government vs states in regulating AI; and how the U.S. can compete globally without shutting out new founders. Timecodes: 00:00 Introduction 00:40 The Little Tech Agenda: Origins & Vision 01:01 Defining “Little Tech” vs. Big Tech 05:00 Challenges Unique to Startups 06:09 Regulatory Frameworks for AI Startups 10:01 The Evolution of AI Policy Debates 11:00 Senate Hearings & the Rise of AI Regulation 13:00 The Influence of Effective Altruists & Interest Groups 14:29 Big Tech at the Policy Table 17:12 Licensing Regimes & Open Source Debates 19:09 National Security & Global Competition 26:57 Crypto Policy Parallels 29:47 The Dormant Commerce Clause & State Laws 31:33 Federal Preemption & the Need for Standards 32:44 Building Coalitions & Political Advocacy 34:00 Industry Alignment & Divergence 35:28 Where Are We At Now? 47:14 State vs. Federal Roles in AI Policy 50:07 The Future of AI Policy: Preemption, Workforce, and Literacy 54:31 Industry Alignment and Political Dynamics Resources: Read the Little Tech Agenda: https://a16z.com/the-little-tech-agenda/ Read ‘Regulate AI Use, Not AI Development: https://a16z.com/regulate-ai-use-not-ai-development/ Read Martin’s article ‘Base AI Policy on Evidence, Not Existential Angst: https://a16z.com/base-ai-policy-on-evidence-not-existential-angst/ Read ‘Setting the Agenda for Global AI Leadership’: https://a16z.com/setting-the-agenda-for-global-ai-leadership-assessing-the-roles-of-congress-and-the-states/ Read ‘The Commerce Clause in the Age of AI”: https://a16z.com/the-commerce-clause-in-the-age-of-ai-guardrails-and-opportunities-for-state-legislatures/ Find Matt on X: https://x.com/MattPerault Find Collin on X: https://x.com/Collin_McCune Stay Updated: Let us know what you think: https://ratethispodcast.com/a16z Find a16z on Twitter: https://twitter.com/a16z Find a16z on LinkedIn: https://www.linkedin.com/company/a16z Subscribe on your favorite podcast app: https://a16z.simplecast.com/ Follow our host: https://x.com/eriktorenberg Please 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.

Collin McCunehostMatt Peraulthost
Sep 7, 202557mWatch on YouTube ↗

At a glance

WHAT IT’S REALLY ABOUT

a16z frames AI policy around startups, competition, and federalism debates

  1. a16z created the “Little Tech Agenda” to fill an advocacy gap for startups and small builders who are rarely represented in DC policy rooms dominated by large incumbents.
  2. They argue for “regulate harmful use, not development,” emphasizing that they support governance but oppose frameworks (licensing, heavy audits/impact assessments) that entrench incumbents and raise startup compliance costs.
  3. They describe how 2023 Senate hearings, “AI doomer/safetyism” narratives (including Effective Altruist influence), and voluntary commitments negotiated by a handful of frontier firms accelerated regulation talk in ways that often excluded startups.
  4. They favor a federal framework (including some preemption) for AI model/development standards while leaving states to enforce criminal, consumer protection, and civil-rights laws against harmful conduct within their borders.
  5. They highlight recent momentum they like—greater openness to open source, a national-security-and-innovation framing in the AI Action Plan, and workforce/literacy initiatives—while warning that misperceptions, fragmented industry coalitions, and export/open-source restrictions could undermine U.S. competitiveness versus China.

IDEAS WORTH REMEMBERING

5 ideas

Startups are structurally missing from AI policymaking, and that skews outcomes.

They argue most proposals are designed for firms with large compliance teams, while many startups lack even a general counsel—making “paperwork-first” governance disproportionately burdensome and anti-competitive.

“Regulate harmful use” is their core governance proposal, not a call for no rules.

They want aggressive enforcement when AI is used to violate consumer protection, civil rights, or criminal law; they say the slogan gets misread because the “use” half is often ignored in headlines.

Development-licensing and nuclear-style regimes would likely entrench incumbents and slow innovation.

They cite past proposals requiring permission to build frontier models and argue licensing historically reduces competition; they warn similar approaches could choke off medical and economic breakthroughs while benefiting the few firms already at scale.

Complex state “high-risk AI” compliance regimes may miss the harm while adding costs.

Using Colorado as an example, they question whether impact assessments/audits meaningfully prevent discrimination compared to directly prohibiting AI-enabled violations of anti-discrimination law and enforcing them.

A federal standard is critical because a 50-state patchwork is unworkable for software markets.

They advocate federal leadership over AI development/model rules (interstate commerce) while preserving robust state authority to prosecute harmful conduct locally; they also point to dormant Commerce Clause limits as a guardrail on state overreach.

WORDS WORTH SAVING

5 quotes

When you've read The Little Tech Agenda, all of a sudden you start thinking, "How is this gonna work for all the people who aren't in the room?"

Matt Perault

If you're five people and you're in a garage... how are you supposed to be able to comply with the same things that are built for 1,000-person compliance teams? Like it's just not the same thing.

Collin McCune

I actually can't think of a single example across the portfolio in which we are arguing for zero regulation.

Collin McCune

The core component of our AI policy framework... is focused on regulating harmful use, not on regulating development. And that sentence, "Regulate use, do not regulate development," somehow is interpreted as do not regulate.

Matt Perault

If we do the same thing to AI, had we done the same thing in AI in that period of time, then you don't have the medical advancements. You don't have the breakthroughs... But beyond that, we lose to China.

Collin McCune

Origins of the Little Tech AgendaStartup vs. Big Tech incentives and compliance capacityRegulate use vs. regulate developmentLicensing regimes and open-source restrictionsEffective Altruism, “doomer” narratives, and policy influenceFederal preemption vs. 50-state patchwork; dormant Commerce ClauseNational security, China competition, export controls/outbound investmentColorado-style high-risk AI laws and impact assessmentsCoalition-building, PAC strategy, and industry alignment dynamicsWorkforce retraining, AI literacy, and startup access to compute/data

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