20VC: A16z Raises $10BN in New Funds | Mercor Raises $350M at a $10BN Valuation | OpenAI Restructuring: Who Wins and Who Loses | Why IRR Is a BS Metric and Three Ways to Win in VC Today

The episode opens with a deep dive into OpenAI's landmark restructuring. By separating the nonprofit charter from a newly formed for‑profit entity, the company clears a legal hurdle that previously blocked capital raises and a potential public offering. Microsoft emerges as a clear winner, having invested roughly $13 billion and already enjoying a ten‑fold return, while the charitable foundation now controls about $135 billion earmarked for AI‑driven social impact. This new corporate architecture not only aligns with emerging hybrid‑entity models like Patagonia but also positions OpenAI for a blockbuster IPO that could dwarf traditional retail listings.

Shifting to venture capital, Andreessen Horowitz (a16z) announced a historic $10 billion raise, split across AI applications, infrastructure, and defense. The size of the fund signals a normalization of mega‑caps in the VC ecosystem, echoing moves by General Catalyst and Lightspeed. Hosts also critique the overreliance on internal rate of return (IRR) as a performance metric, arguing that capital efficiency, growth trajectory, and strategic positioning now matter more for LPs. This perspective reflects a broader industry shift toward long‑term value creation rather than short‑term multiple chasing.

Finally, the conversation explores the ripple effects of OpenAI’s deal on secondary markets and future mega‑valuations. SoftBank’s dual transactions—pre‑investment at a lower price and a share buyback at a premium—illustrate how investors can lock in outsized gains, effectively generating IRR percentages that would be impossible in traditional deals. With the restructuring in place, OpenAI could feasibly pursue a $2 trillion IPO within a few years, reshaping the benchmark for tech valuations. For venture partners and LPs, the takeaway is clear: prioritize structures that unlock liquidity, align incentives, and support sustainable growth, rather than fixating on headline‑grabbing multiples.