Despite continuing to bet big on A.I. startups and chip programs, the founders of the venture capital firm Andreessen Horowitz say they’ve noticed a drop off in A.I. model capability improvements in recent years. Two years ago, OpenAI’s GPT-3.5 model was “way ahead of everybody else’s,” said Marc Andreessen, who co-founded Andreessen Horowitz alongside Ben Horowitz in 2009, on a podcast released yesterday (Nov. 5). “Sitting here today, there’s six that are on par with that. They’re sort of hitting the same ceiling on capabilities,” he added.

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That’s not to say the investment firm doesn’t have faith in the new technology. One of the most aggressive investors in the A.I. space, Andreessen Horowitz earlier this year earmarked $2.25 billion in funding for A.I.-focused applications and........

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