Major platform shifts like AI reward founders who are not burdened by historical context or "how things have been done before." This creates an environment where young, inexperienced teams working with high intensity (e.g., "9-9-6") can out-innovate incumbents with existing business models.

As startups build on commoditized AI platforms like GPT, product differentiation becomes less of a moat. Success now hinges on cracking growth faster than rivals. The new competitive advantages are proprietary data for training models and the deep domain expertise required to find unique growth levers.

In the AI era, where technology can be replicated quickly, the true moat is a founder's credibility and network built over decades. This "unfair advantage" enables faster sales cycles with trusted buyers, creating a first-mover advantage that is difficult for competitors to overcome.

The initial experience of using a powerful AI tool is one of immense personal empowerment. This feeling is quickly tempered by the realization that this capability is now universally accessible, effectively devaluing the specialized skill and diluting the individual's competitive advantage.

Previously, building sophisticated digital experiences required large, expensive development teams. AI and agentic tools level the playing field, allowing smaller businesses to compete on capabilities that were once out of reach. This creates a new 'guy in the garage' threat for established players.

In the SaaS era, a 2-year head start created a defensible product moat. In the AI era, new entrants can leverage the latest foundation models to instantly create a product on par with, or better than, an incumbent's, erasing any first-mover advantage.

A major market opportunity exists when one side of an industry (e.g., insurance companies) adopts new technology like AI faster than its counterpart (e.g., hospitals). Startups can succeed by building tools that close this technology gap, effectively 'arming the rebels' and leveling the playing field.

The true advantage for new AI-native companies lies not in simply using AI tools, but in building entirely new business models around them. This mirrors how Direct-to-Consumer brands leveraged Shopify not just to sell online, but to fundamentally change distribution, marketing, and customer relationships, thereby outmaneuvering incumbents.

Many engineers at large companies are cynical about AI's hype, hindering internal product development. This forces enterprises to seek external startups that can deliver functional AI solutions, creating an unprecedented opportunity for new ventures to win large customers.