

The 7 Most Powerful Moats For AI Startups
403 snips Oct 3, 2025
Explore the pivotal role of moats in AI startups as hosts dive into Hamilton Helmer’s Seven Powers framework. They debate whether these businesses can overcome the challenge of being mere ChatGPT derivatives. Real-world examples illustrate how process power and cornered resources create barriers to entry. Discover how switching costs, counter positioning, and network effects drive defensibility. The conversation wraps up with a reminder that speed is a foundational moat, emphasizing the importance of solving real problems quickly.
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Start With Pain, Not Moats
- Find a real customer with intense pain and solve that problem first before worrying about moats.
- Iterate with customers and the moat will often appear as you scale usage and engineering.
Speed Is The First Moat
- Early-stage moat is usually speed: shipping features faster than large incumbents wins the initial market.
- Large firms move slower due to processes, giving startups a durable early advantage.
Process Power Beats Hackathon Demos
- Process power is deep engineering and operations that are expensive to replicate and produce reliable mission-critical systems.
- Hackathon demos are trivial; production-grade agent systems require years of toil to be trustworthy for customers like banks.