Khosla’s Ethan Choi On AI, Founder-First Investing And The Fate Of Entry-Level Jobs

2026-03-11 · Source: Artificial intelligence - Crunchbase News · Field: Technology & Digital — Artificial Intelligence & Machine Learning, Emerging Technologies & Innovation, Cloud Computing & IT Infrastructure · Depth: Intermediate, medium

Summary

Ethan Choi, a partner at Khosla Ventures since 2024 and previously at Accel, is a prominent investor known for his founder-first conviction and stage-agnostic approach, shifting from 80% metrics/20% founders to 90% founders. He has led investments in numerous AI-first, enterprise software, and fintech infrastructure companies, including 1Password, Klaviyo, Pismo (acquired by Visa), Ramp, ClickHouse, and Vercel. Choi is vocal about AI's profound impact on the workforce, particularly the disappearance of entry-level jobs, as AI tools enable individuals to perform tasks previously requiring junior associates. He advocates for universities to adapt by focusing on applied knowledge and AI-driven project building, preparing graduates to function as third- or fourth-year engineers immediately. Choi also predicts "mass carnage" for non-AI-native software companies, emphasizing a market shift towards free cash flow and PE multiples, and highlights opportunities in replacing core systems of record like NetSuite with AI-powered solutions.

Key takeaway

For CTOs and VPs of Engineering assessing future talent needs and product roadmaps, recognize that AI is fundamentally reshaping the workforce and competitive landscape. Your teams must prioritize hiring individuals who can perform as senior engineers from day one, and your product strategy should aggressively pursue AI-native reinvention to avoid being outcompeted by startups building from scratch. Invest in continuous upskilling and consider how AI can enable the replacement of entrenched legacy systems.

Key insights

AI is rapidly eliminating entry-level jobs and forcing a fundamental shift in education and business models.

Principles

• Founder quality is paramount in rapidly changing markets.
• AI-native companies will replace non-AI-native incumbents.
• Universities must prioritize applied AI education.

Method

Investors should prioritize founder quality (90%) over metrics (10%) due to rapid market changes. Companies must reinvent to become AI-native, focusing on inference- and usage-based revenue models.

In practice

• Use AI models to accelerate technical understanding.
• Evaluate companies based on AI-native revenue models.
• Consider replacing legacy systems of record with AI solutions.

Topics

• AI Workforce Impact
• Venture Capital
• AI-Native Software
• Fintech Infrastructure
• Systems of Record

Best for: CTO, VP of Engineering/Data, AI Product Manager, Investor, Entrepreneur, Executive

Related on AIssential

• AI Needs You in the Loop: My Conversation With My Daughter — Thriving in the AI era requires combining AI-first problem solving, an entrepreneurial mindset, and essential human skills.
• KPMG Survey Shows AI is Driving Hiring Surge & Capital Spend — AI investments are expanding workforces and creating new job categories, challenging job displacement assumptions.
• When AI Puts Gen Z in the C-Suite — Gen Z's AI-native perspective offers a distinct advantage for C-suite AI leadership, fostering innovative product and strategy development.
• TechCrunch Mobility: The AI skills arms race is coming for automotive — AI is reshaping the automotive workforce and creating new revenue streams through data-driven applications.
• Random thoughts while gazing at the misty AI Frontier — Compute (tokens) is emerging as a fundamental economic currency in the AI industry, driving new business models and investment.
• OpenAI Closes Biggest AI Deal Ever — Current AI research prioritizes exploitation over exploration, hindering fundamental breakthroughs.

Open in AIssential →

Editorial summary, takeaway, and curation by AIssential. Original article published by Artificial intelligence - Crunchbase News.