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a16z Podcast
a16z Podcast•September 6, 2025

Building APIs for Developers and AI Agents

In this a16z Podcast episode, Alex, founder of Stainless, discusses the evolution of APIs as the "dendrites of the Internet" and how his experience at Stripe led him to create a platform for generating high-quality SDKs and developer tools. The conversation explores the emerging challenges of designing APIs for both human developers and AI agents, highlighting the importance of thoughtful interface design, type safety, and context management in the era of large language models.
AI & Machine Learning
Indie Hackers & SaaS Builders
Tech Policy & Ethics
Developer Culture
Cryptocurrency
Alex
Jennifer Lee
OpenAI

Summary Sections

  • Podcast Summary
  • Speakers
  • Key Takeaways
  • Compelling StoriesPremium
  • Strategies & FrameworksPremium
  • Thought-Provoking QuotesPremium
  • Statistics & Facts
  • Additional ContextPremium
  • Key Takeaways TablePlus
  • Critical AnalysisPlus
  • Similar StrategiesPlus
  • Books & Articles MentionedPlus
  • Products, Tools & Software MentionedPlus
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Podcast Summary

In this insightful episode, Stainless founder Alex explores the evolution of APIs from simple connective tissue to the neural pathways of internet infrastructure. He shares his journey from building world-class developer platforms at Stripe to democratizing SDK generation for every API company. The conversation dives deep into the emerging Model Context Protocol (MCP) (06:00), where APIs become interfaces for AI agents rather than just human developers. Alex reveals how context window limitations and tool overwhelm create new design challenges (11:28), requiring innovative solutions like dynamic tool exposure and JQ filtering to keep AI interactions focused and efficient. The discussion culminates with predictions about the future of API development, where high-level business logic takes priority while automated systems handle the intricate details of robust, type-safe developer experiences.

Speakers

Alex (Stainless Founder)

Former Stripe API platform engineer who built their renowned API docs redesign and SDK code generation system. Founded Stainless to bring enterprise-grade developer platforms to every API company, working with cutting-edge clients like OpenAI, Anthropic, and Cloudflare.

Jennifer Lee (Host)

Partner at Andreessen Horowitz (a16z), focusing on developer tools and infrastructure investments. Leads conversations on the future of APIs, AI agents, and developer experience platforms.

Key Takeaways

Treat SDKs as Your Primary Developer Interface

To developers using your API daily, the SDK IS the API. Focus on making SDKs robust, polished, and idiomatic rather than just generating basic wrappers. (02:08) Your users expect well-typed libraries in their language as a baseline developer experience requirement.

Master the Art of Context Window Economy

When exposing APIs to LLMs through MCP, naive approaches consume entire context windows. Implement dynamic tooling with only 3 core functions: list endpoints, describe single endpoint, execute endpoint. This scales O(1) instead of O(n) while preserving flexibility. (13:34)

Enable Surgical Data Extraction with JQ Filtering

Large API responses kill LLM interactions. Build JQ filter capabilities into your tools so agents can specify exactly which JSON properties they need, mimicking SQL's SELECT clause. LLMs excel at crafting these filters, keeping context usage minimal. (15:51)

Leverage Type Safety as Your Quality Gate

Coding agents prefer SDKs over raw API calls because type checking provides immediate feedback loops. Those "red squiggly lines" catch errors before production, enabling human reviewers to focus on business logic rather than syntax debugging. (18:55)

Design Declarative, DRY Code Architecture

As LLMs handle more coding tasks, prioritize clean, declarative backends over "spaghetti" REST implementations. Establish prescriptive API design standards that agents can follow consistently, letting humans focus on high-level business needs while automation handles infrastructure details. (25:34)

Compelling Stories

Available with a Premium subscription

Strategies & Frameworks

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Thought-Provoking Quotes

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Statistics & Facts

  1. The Stripe team used a meta-approach where (02:08) "to the developers who use the Stripe API every day, the SDK is the API" - highlighting that developers primarily interact through SDKs rather than raw APIs.
  2. Context window limitations force a critical trade-off: describing every endpoint in the Stripe API with full documentation (12:15) "congratulations, you've just used up your entire context window" when exposing APIs to LLMs via MCP.
  3. Stainless reduced API tool complexity from O(n) to O(1) by implementing dynamic mode: (14:14) "instead of say, you know, 50 or 500 different tools, we only expose three" for listing, describing, and executing endpoints.

Additional Context

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Key Takeaways Table

Available with a Plus subscription

Critical Analysis

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Similar Strategies

Available with a Plus subscription

Books & Articles Mentioned

Available with a Plus subscription

Products, Tools & Software Mentioned

Available with a Plus subscription

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