The way of AI in 2025; in two steps.

“Create a 10x workflow that feeds into a marketplace moat”

• A successful vertical AI startup should make a process 10 times faster or more efficient than before.
• This new workflow should naturally generate network effects or data advantages — what he calls a marketplace moat.
• For example:
  • An AI tool for architects that makes 3D renderings 10x faster could also build a marketplace for design templates or verified contractors.
  • An AI for lawyers that drafts contracts 10x faster could collect anonymized contract data and sell benchmarking insights.

Key idea: The “10x” improvement becomes the entry point, and the data or marketplace becomes the defensible moat.

“Increase TAM by making something financially viable for new markets”

Meaning:

• TAM (Total Addressable Market) expands when AI automation makes previously expensive workflows accessible to smaller or new customer segments.
• Example:
  • If video editing AI reduces production costs drastically, small creators or startups can now afford professional-grade videos — creating a new market layer.
  • If AI bookkeeping tools make accounting affordable for freelancers, you’ve just unlocked a long tail of users.

Key idea: AI not only improves efficiency — it also democratizes access, opening up new customer bases.