The Shifting Dynamics & Meta-Moats of AI by Michael Dempsey

Another fail state of short-term games are those building products with a skeuomorphic framing of building something that is “x but with AI” instead building a novel thing that is “y” because of AI (View Highlight)

In addition, they must build infrastructure that enables them to not be rate-limited in areas like compute, data, and talent, all enabled by capital that allows them to not have to throttle down speed of product iteration and possibly be disrupted due to the lack of fully unassailable moats that exist within AI currently. (View Highlight)

This has caused us to progressively prefer companies that aim to own more of the stack than originally anticipated, including owning the entire stack and building an AI-enabled operating company.8AIFleet in our portfolio is an example of this (View Highlight)

Companies that are in industries where data is structurally locked within incumbents with little computational excellence (healthcare, bio, industrials) are also increasingly attractive if you are able to navigate partnerships and more. (View Highlight)