Chris Roth: “If software moats are eroding, what still holds? Compute — physical infrastructure that’s hard to replicate. Human relationships — partnerships, contracts, brand recognition. Capital — cash in the bank to weather competition. Proprietary data — data that can’t be scraped or synthesized. Team — rare talent that competitors can’t easily poach. Exclusive rights — patents, trademarks, copyrights, regulatory licenses. Network effects — value that scales with users.”
NYTimes: “Companies are realizing they can no longer simply promote themselves to potential customers. They have to win over the robots, too…“There is a new influencer you need to reach, and it’s this A.I. model,” said Brian Stempeck, a co-founder of Evertune.”
Nicolas Bustamante: “The real threat isn’t the LLM itself. It’s a pincer movement that vertical software incumbents didn’t see coming. From below, hundreds of AI-native startups are entering every vertical. When building a credible financial data product required 200 engineers and $50M in data licensing, markets naturally consolidated to 3-4 players. When it requires 10 engineers and frontier model APIs, the market fragments violently. Competition goes from 3 to 300.”
SaaStr: “You Must Be AI Infrastructure — Not “AI-Enhanced SaaS”. The market is ruthlessly punishing companies that “added AI” to existing products. Salesforce (Agentforce), HubSpot (Breeze), Adobe (Firefly), Monday.com (AI blocks) — all down 30-50%+ even though these are real products with real adoption. The market doesn’t care. The winners — Palantir, Cloudflare, Snowflake — are AI infrastructure. They don’t add AI to a workflow tool. They are the infrastructure layer that AI runs on. Palantir is the operational AI decision layer. Snowflake is where the data that feeds AI lives. Cloudflare is the edge where AI inference executes. As SaaStr has been saying: Don’t build SaaS and add AI. Build AI and add SaaS economics.”


