AI is a wedge, not a moat

Two years ago an AI feature was a differentiator. Today every competitor has one, and the underlying models are available to anyone with an API key. Being 'AI-native' is table stakes, not a strategy.

The companies we are most excited about use AI as a wedge into a workflow that incumbents have neglected, then build the things that are actually hard to copy: distribution, proprietary data generated by the product itself, and deep integration into how a customer runs their business.

When we evaluate an AI company, we ask a simple question: if the model got ten times better tomorrow and everyone had it, would this business be stronger or weaker? The right answer is stronger.