AI startups can still build brand, data and network-effect moats
edgarpavlovsky · x · 2026-07-27
The author argues that network effects are likely to re-emerge as an important startup moat, after fading from the conversation in the Uber and DoorDash era.
He says the optimistic view for AI startups is that today’s moats are not mutually exclusive:
- Brand can still be built, and new brands may have even stronger cult-like momentum.
- Data can still be collected, because plenty of valuable data remains uncollected.
- Network effects can become the growth flywheel again.
The post is a rebuttal to the idea that LLMs, inference businesses, and vibe-coded apps are all too easy to copy to support durable moats.
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