a16z Podcast — "Why We Invested In Cluely"

Date: June 21, 2025
Host: Andreessen Horowitz (Brian Kim Jo, John, Jordi)
Episode Theme:
This episode unpacks a16z’s decision to invest in Cluely, an AI product making waves online. Brian Kim Jo, a partner at a16z, joins John and Jordi to discuss what set Cluely apart, the role of momentum and risk in AI investing, and the unique distribution and marketing genius of founder Roy. The episode blends insights on product evaluation, founder dynamics, and the evolving nature of tech go-to-market strategies.

Main Theme and Purpose

The conversation centers on why Andreessen Horowitz (a16z) invested $15 million in Cluely—a viral AI desktop app. The guest, partner Brian Kim Jo, explains how distribution, product innovation, and unconventional go-to-market tactics influenced the decision. The team explores the calculated risks a16z takes with founders like Roy, the unique distribution approaches for AI apps, and how "momentum is a moat" in the current era.

Key Discussion Points and Insights

1. Why Cluely? a16z’s Rationale for Investing

• Distribution as a Strength (02:35–03:38):
  Brian emphasizes that repeatable, organic distribution is rare and crucial. Roy, Cluely’s founder, excels at breaking through the noise—a key driver for the investment:

  • “It's really, really hard to get distribution these days, and to get it repeatedly is a little bit of a dark art. … Roy had that in abundance.” (Brian Kim Jo, 02:35)

• Product Love and the “Dragon Ball Z” Test (02:56–03:38):
  Brian illustrates how Cluely feels like a real-life “scouter” from Dragon Ball Z that instantly gives context during online interactions.

  • “I always wanted one of those scouters that tells you, how strong is Jordy, how strong is John. … And that's essentially what it is on your web browser.” (Brian Kim Jo, 02:56)

• Revenue and Real Traction (05:30):
  Addressing skepticism about hype versus substance, Brian notes Cluely’s ability to turn attention into paying users, both in consumer and enterprise markets.

  • “He is actually converting that to revenue…so that, to me, is the seriousness that underlies the crazy stunts people see outside.” (Brian Kim Jo, 05:30)

2. Distribution: New Playbooks and Viral Attention

• Earned Media, Virality, and Limits (05:59–07:21):
  Jordi and John probe whether Roy’s viral stunts and organic buzz are sustainable or just a “beachhead” to get started. Is there a cap to earned media, or can a founder keep going viral indefinitely?

  • Jordi distinguishes between an attention-grabbing launch and the need for scalable, traditional GTM channels.

• The MrBeast Playbook, Reversed (06:30–07:21):
  They wonder if Roy is building a new type of founder-driven viral brand, inverting the “MrBeast launches snacks” formula.

• Brian’s Perspective on Sustainable Virality (07:27–08:10):
  Brian argues that the online “oceans” of audience are vast and mostly untapped.

  • “From a media and audience perspective, I think of it as like a bunch of oceans…all of these pools of water are very, very deep. … And for general population…we’re just scratching the surface today.” (Brian Kim Jo, 07:27)

3. Calculated Risk and Momentum in AI Investing

• Risk Appetite and Early Movers (08:10–08:49):
  The hosts reflect on how successful products often start with eccentric, high-risk founders or odd beginnings.

  • “If you think of the history of large general population products, you see a lot of them actually being pretty risky early on…” (Brian Kim Jo, 08:49)

• “Momentum is a Moat” (00:00, 08:49–09:54):
  Brian’s central thesis is that momentum—both in terms of distribution and product iteration—is the only real “moat” in fast-moving tech.

  • “Momentum is a moat today in this sort of era of AI applications. … The calculated risk here is that Roy can convert this awareness into people clamoring to work at the company…then use that to continue to iterate on innovation on the product format.” (Brian Kim Jo, 00:00 & 08:49)

4. Product Use and Endorsement

• The hosts and their team have been hands-on users and paid subscribers of Cluely, noting its speed and quality of answers. They compare it favorably to ChatGPT.
  • “We’re paid subscribers of Cluely. … The answers were very good. … It answered the 747 question better than my ChatGPT 4.0 direct answer.” (John & Jordi, 05:13)

5. Platforms, Mobile, and the Tech Adoption Curve

• Desktop vs. Mobile Distribution (09:54–11:05):
  Jordi asks about challenges Cluely faces getting beyond desktop—especially given macOS and iOS restrictions around privacy and APIs.

• Brian’s Optimism and “Digital God” Analogy (11:05–11:45):
  Brian is bullish that platform challenges will be overcome and AI assistants like Cluely will eventually be omnipresent.

  • “AI is like a digital God we created and we trapped it behind a little chat box. … It is natural to me that it should live on a thing that you interact with the most. … The little boxes will get better, and we’re excited for that future.” (Brian Kim Jo, 11:05)

Notable Quotes & Memorable Moments

• “Momentum is a moat today in this sort of era of AI applications.”
  (Brian Kim Jo, 00:00, 08:49)

• “We invest for strengths as strengths, as, you know, not lack of weakness.”
  (Brian Kim Jo, 02:55)

• “From a media and audience perspective…I think of it as like a bunch of oceans…all of these pools of water are very, very deep.”
  (Brian Kim Jo, 07:27)

• “He is actually converting that to revenue…that’s the seriousness that underlies the crazy stunts people see outside.”
  (Brian Kim Jo, 05:30)

• “AI is like a digital God we created and we trapped it behind a little chat box.”
  (Brian Kim Jo, 11:05)

• “It answered the 747 question better than my ChatGPT 4.0 direct answer.”
  (Jordi, 05:13)

• “MrBeast follows Roy.”
  (Brian Kim Jo, 07:21)

Timestamps for Key Segments

• 02:35–03:38 – Distribution and Product Love
• 05:13 – Cluely Outperforms ChatGPT for Specific Use Case
• 05:30 – Conversion from Hype to Revenue
• 07:27–08:10 – Virality and Audience “Oceans”
• 08:49–09:54 – Calculated Risk and Momentum
• 11:05 – AI as the “Digital God” and Platform Adoption

Episode Flow & Tone

The episode unfolds with a fast-paced, conversational style, balancing John and Jordi’s playful curiosity and skepticism against Brian’s thoughtful, optimistic explanations. The tone is candid, with frequent asides about industry dynamics, VC culture, and even in-studio jokes about their intern’s “office pod”. The group’s familiarity with both Cluely and Roy creates a relaxed yet insightful atmosphere; Brian’s soundbites are especially punchy and memorable.

Summary

a16z’s investment in Cluely is rooted in belief in founder-led distribution, breakthrough product experience, and the potential for viral attention to drive real business. Brian Kim Jo’s framework centers on momentum, the willingness to back unconventional founders, and optimism toward platform evolution. The episode demystifies AI investing at the intersection of internet culture, product innovation, and venture risk-taking.