Andreessen Horowitz (a16z) released proprietary data benchmarking revenue growth for AI startups, revealing that the median business-to-business (B2B) AI company achieves an increase from zero to $2.1 million in annual recurring revenue (ARR) within its first year. Meanwhile, the median business-to-consumer (B2C) AI startup grows from zero to $4.2 million ARR in the same period, indicating faster revenue growth among consumer-focused AI companies. However, some analysts caution that much of this AI startup revenue may be exploratory rather than sustainable, drawing parallels to the telehealth sector's experience during the COVID-19 pandemic, where initial growth did not always translate to durable business models. These insights were highlighted by a16z co-founder Saurabh Gupta and analyzed by Marc Andrusko and Olivia Moore.