Why AI Moats Will Be Built on Data and Deployment, Not Models
Source: a16z
As AI models commoditize—with open-source alternatives matching proprietary performance—the competitive advantage shifts to whoever can deploy intelligently at scale and accumulate the most relevant training data. Defensibility comes from control of the feedback loop: a logistics company's autonomous fleet generates proprietary data that improves its own operations faster than competitors can replicate, creating a compounding edge that no single model can match. This reshapes the venture thesis: success goes to companies that own both the intelligence and the domain where it operates.