In his firm's first investor letter, Joshua Kushner argues against the 'spray-and-pray' investment model common in Silicon Valley, favoring a more concentrated approach to AI funding.

Thrive Capital founder Joshua Kushner has criticized Silicon Valley venture capital firms for their approach to AI, warning that industry excitement should not compromise investment discipline. In his firm's first-ever investor letter, Kushner argued that many West Coast firms are fixated on incremental technological gains. He contrasted this with Thrive's strategy of concentrating capital and time on a small number of high-conviction investments rather than pursuing a broad, high-volume betting strategy.

Concentrated Investment Philosophy

Kushner stated that Thrive avoids the 'spray-and-pray' model, noting that approximately 90% of the firm's capital is directed into its top 15 investments per fund. He emphasized that the firm prioritizes independent judgment over market sentiment. This approach differs from the 'outlier' philosophy often associated with firms like Andreessen Horowitz, which typically makes numerous bets with the expectation that a few massive successes will cover losses elsewhere.

AI Integration and Performance

Thrive has deepened its relationship with OpenAI, including a December 2025 deal where OpenAI took an ownership stake in Thrive Holdings, a spinout that acquires companies to provide them with AI makeovers. Thrive Holdings currently employs 35 engineers and has acquired over 70 businesses. Kushner reported that Thrive manages $60 billion in assets, with a gross internal rate of return of 41% and a net internal rate of return of 33% across its funds.