Netflix’s initial disruption wasn't just mailing DVDs. It was shifting the industry from Blockbuster's punitive, transaction-based model (built on late fees) to a consumer-friendly subscription model with no late fees. This fundamental business model innovation was the true competitive advantage even before streaming.

The speed of models like SWE 1.7 is more than a convenience; it fundamentally changes user behavior. It eliminates the awkward latency gap where tasks are too slow for real-time interaction but too fast to fully context-switch. This enables a new "watch it work" workflow, keeping users in a state of flow.

With traditional moats gone, the only way to stay ahead is to move faster. Defensibility now comes from the speed at which a team can ship new value and deeply understand its customers, ensuring the product is always one step ahead of a crowded field.

AI makes it cheaper to build new features. Instead of passing these savings on through lower prices, companies should use this efficiency to expand their product's scope to solve adjacent customer problems. This bundling strategy increases the overall value proposition, allowing you to charge more and become more integral.

Frame the value of speed beyond just a better user experience. Ask customers how they could use the time saved by faster AI responses to pack in more value, create premium product tiers, or open entirely new revenue streams that were previously impossible.

The initial phase of any new technology is applying it to old problems. The transformative phase is creating things previously impossible. The key question for AI is not 'How can we do X faster?' but 'What new thing can we do now?', similar to how Spotify redefined music beyond an online CD store.

In today's volatile market, speed and agility have replaced sheer size as the primary competitive advantage. As stated by Rupert Murdoch, it's 'the fast beating the slow.' Startups often win by rapidly responding to customer needs, allowing them to outmaneuver slower, larger incumbents.

Cerebras CEO Andrew Feldman argues that massive speed improvements in AI are not just about reducing latency. Like how fast internet turned Netflix from a DVD mailer into a studio, ultra-fast AI will enable fundamentally new applications and business models that are impossible today.

Many viable AI product ideas are currently impossible because the cost of search makes their unit economics unworkable. The next wave of innovation will be unlocked not just by better models, but by bringing search costs down another order of magnitude.