a16z|Jul 31, 2026 15:03
A $100K/year customer gets white-glove treatment while a $10/year customer gets a help center. @DecagonAI's bet is that AI closes that gap, and enterprise is buying it.
Co-founders Jesse Zhang and Ashwin Sreenivas sit down with a16z's Kimberly Tan and Sarah Wang to discuss what they've learned running agents inside the biggest banks, airlines, and telcos:
- Smart-vs-cheap models are a false trade-off
- Start with frontier models on new use cases, then migrate to open-source after they mature
- Fine-tuning per use case works at the application layer
- Support demand always outran supply: make it cheaper and companies buy more of it
00:00 Intro
01:07 90% of Decagon runs on open-source
05:00 The smart vs. cheap trade-off is false
09:26 Building a model factory in-house
15:07 Are the labs the last startups?
21:21 Are forward deployed engineers a trap?
28:36 The agent that builds the agent
37:02 Glass box beats black box
47:55 From help desk to AI concierge
1:14:45 Jevons paradox in customer support
@thejessezhang @AshwinSreenivas @kimberlywtan @sarahdingwang(a16z)
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