{"id":141530,"date":"2025-03-18T11:39:52","date_gmt":"2025-03-18T11:39:52","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/internet-business\/ai-moats-part-two-by-gennaro-cuofano\/"},"modified":"2025-03-18T11:39:52","modified_gmt":"2025-03-18T11:39:52","slug":"ai-moats-part-two-by-gennaro-cuofano","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=141530","title":{"rendered":"AI Moats: Part Two – by Gennaro Cuofano"},"content":{"rendered":"


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Get ready for a long ride into the world of competition in the AI industry!<\/p>\n

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I\u2019ll tackle the above in this massive issue, so hang tight and follow me along.<\/p>\n

In the meantime, if you want to grasp the whole AI ecosystem, that\u2019s your go-to map.<\/a><\/strong> <\/a><\/p>\n

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In <\/span>AI Moats: Part One<\/a>,<\/span><\/strong> I\u2019ve tackled the build-up of moats on the application layer side. <\/span><\/p>\n

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I\u2019ve called it \u201cPart One\u201d because this was dedicated to the applications side of it (the so-called \u201cwrappers\u201d) to highlight how not only you can, but now more than ever, it\u2019s possible to get momentum, build something quite valuable, out of nowhere and with very low entry barriers.<\/em><\/p>\n

Yet, I\u2019ve also shown how that speed and capability to tune an app and bring it to the millions fast must be translated into vertical infrastructure\/architecture, branding, and distribution to become a moat.<\/p>\n

I\u2019ve mapped everything into the\u00a0<\/span>Moat\u2019s three circles, moving from speed and agility\u00a0to strategic moat.<\/a><\/strong><\/p>\n

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In the end, in <\/span>competitive moating<\/a>,<\/span><\/strong> I\u2019ve explained how that tech advantage translated into a business moat. <\/span><\/p>\n

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That is what it means to build an AI-native business model. <\/p>\n

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From there, you get a scaling advantage.<\/a><\/strong> <\/a><\/p>\n

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That is at the core of what I\u2019ve defined as an AI-up<\/a><\/strong><\/p>\n

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Back to the foundational stack, though, things are slightly different. <\/strong><\/p>\n

This is part of an Enterprise AI series to tackle many of the day-to-day challenges you might face as a professional, executive, founder, or investor in the current AI landscape.<\/em><\/p>\n

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Or pretty much, the guys, like OpenAI, Anthropic, Meta, and Google, who need to keep pushing these AI models to the next level to maintain a competitive edge, thus also wide market shares of the AI market.<\/p>\n

Many people are surprised when tech gets commoditized quickly.<\/p>\n

But that\u2019s a fact.<\/p>\n

Yet that doesn\u2019t mean you can\u2019t build a competitive moat out of it, but it won\u2019t be just on the core tech; rather, it\u2019s how that\u00a0<\/span>core teck will translate into accelerated growth, distribution, and branding; you get out of it to lock in a market.<\/strong><\/p>\n

However, before we get to it, there are a few concepts to master.<\/p>\n