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Fintech Hippo's avatar

Interesting article - agree that AI isn't really a moat rather than something that can be expanded on once the core product brings in data. Confused on why many founders don't recognize this - why do you think so?

Also, do you really think data/AI can be a moat for these big companies? Data is becoming increasingly commoditized, and data itself has marginal diminishing returns. After a certain point, the data collected is very similar to prior data collected and doesn't enhance the predicative capabilities of the model. Even if you take a company like Cloudfare/Crowdstrike, as competitors chase them in these fields, they gain access to similar data that supposedly gave those providers a moat. I found this article from a16z to be interesting on this topic: https://a16z.com/2019/05/09/data-network-effects-moats/

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Liberty's avatar

Hey! Just to let you know I linked this post here:

https://www.libertyrpf.com/i/72573854/why-ai-is-not-a-moat

Cheers! 💚 🥃

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