Artificial intelligence (AI) stands as a pivotal innovation of our generation, with the potential to tackle complex societal challenges and foster a new economy, reminiscent of the printing press, electricity, and the internet. This transformative moment emphasizes the importance of collaboration within the AI ecosystem, as both Little Tech (startups) and Big Tech (larger companies) play crucial roles in expanding opportunities and maintaining economic competitiveness. While our firms may differ in certain views, we recognize that the policy decisions made today will shape the future of U. S. innovation and entrepreneurship. Both Microsoft and a16z understand the importance of supporting startups and small businesses, which have historically thrived on innovation and creativity. We see tremendous opportunities within the AI landscape, underscored by the need for policies that encourage competition and innovation. A key strategy involves responsible market-based approaches, including open-source AI, which has historically fueled technological advancements by leveling the playing field between major institutions and smaller entities. Such models enhance accessibility and encourage greater collaboration among researchers and entrepreneurs. A16z’s “Little Tech Agenda” promotes policies that ensure startups have the freedom to innovate without unnecessary regulatory burdens. Microsoft aims to invest in robust AI infrastructure, enabling affordable access for entrepreneurs and fostering new business growth. Our collaborative aim is to nurture an ecosystem that harnesses academic and entrepreneurial potential while supporting open-source innovation, which will lead to better outcomes for society. We propose several policy initiatives to further develop the AI startup landscape: 1. **Supportive Regulation**: Regulations should facilitate the expansion of U. S. tech firms and focus on technology misuse without imposing unnecessary hurdles for business growth. 2.

**Encouraging Competition**: Regulators should allow diverse AI model offerings and ensure developers have the freedom to choose models that best fit their needs. 3. **Open-source Innovation**: Emphasizing open-source AI will amplify innovation and provide startups with tools to develop unique solutions. 4. **Open Data Commons**: Governments should create accessible data pools to empower AI developers and support a rich ecosystem of data sharing. 5. **Right to Learn**: Copyright policies must not hinder AI from utilizing data for learning, ensuring knowledge remains accessible to all. 6. **Government Investment**: The U. S. should invest in AI to spur innovation, enhance national security, and stimulate economic growth while examining procurement practices to favor startups. 7. **Supporting Workforce Development**: Policies should focus on digital literacy and workforce retraining to prepare individuals for opportunities in an AI-driven economy. Despite current divisions, it is essential to build common ground to continue advancing the tech ecosystem that has underpinned U. S. economic growth for decades. By joining forces, Little Tech and Big Tech can advocate for public policies that foster innovation and serve the broader national interest.