AI agents split into niches, with open and vertical products winning in specific workflows
yangyi · x · 2026-07-28
The author argues that AI products don’t necessarily “eat” each other; instead, they occupy different niches. In the thread, they argue that vertical tools can win where general-purpose agents are too broad or too expensive, that openness matters because users want model choice and self-hosting, and that down-market, operationally focused products can beat more “AGI-first” teams in specific workflows such as marketing and Reddit loops.
They use examples like custom marketing SaaS, Xiaohongshu API access, and agency workflows to argue that smaller, specialized products can still have a real moat.
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