The Empty Promise of Data Moats | Andreessen Horowitz

Start building your moat now it’s not too late https://t.co/NEz8eKSZf6

There are very few moats in AI. But like with human relationships, you will stick with the systems that know you best Memory and context have gravity. State is a moat.

The moats are in the customers, not the data. We predicted that the best generative AI companies could generate a sustainable competitive advantage through a data flywheel: more usage → more data → better model → more usage. While this is still somewhat true, especially in domains with very specialized and hard-to-get data, the “data moats” are on

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Weaker defensive moats due to the commoditization of AI models and challenges with data network effects.

If the blockchain and AI take hold, those moats will no longer be data and content creation. Which seems like a bad thing–but what’s left? From my perspective as a nascent entrepreneur, future moats fall into three broad categories: proprietary technology, supply chain innovations, and media that can’t be replaced by AI because it comes from a stro

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