How Your Agents Produce Code Is More Valuable Than the Code Itself
There's a quiet consensus forming across AI investors and operators, and it's worth saying plainly: raw model intelligence is commoditizing. Frontier labs ship "good enough" models on a rolling basis, open-weight alternatives close the gap within months, and inference prices keep collapsing. In that world, the model is not a moat. The durable advantage has moved up the stack — to the proprietary feedback loop that captures how a system is actually used, and feeds that back into making it better.
This is the "data flywheel," and it's not a new idea. It's why Google search compounds, why Tesla's driver-assist improves with every mile driven that competitors can't replicate, why Netflix's recommendations get eerily good. Each turn of the loop — usage generates data, data improves the product, a better product drives more usage — strengthens a moat that, after twelve to twenty-four months of compounding, often becomes uncrossable.
Agentic...
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