AI Founders Must Prioritize Speed and Market Visibility, Says a16z Partner Bryan Kim, Redefining 'Moat' in Rapidly Evolving Sector

Bryan Kim, a prominent partner at Andreessen Horowitz (a16z), has articulated a significant shift in the strategic imperative for founders in the artificial intelligence sector, emphasizing that "momentum IS the moat." This redefines traditional business defenses in an era where technological advantages erode rapidly, necessitating both aggressive product development and proactive market visibility. His firm's $15 million investment in Cluely AI, a company known for its rapid growth and controversial marketing tactics, exemplifies this investment philosophy.

Kim's thesis, recently shared on social media, posits that the conventional approach of "heads down, stayed off social, and just built" is no longer sufficient for success in the fast-paced AI landscape. He asserts that it is crucial for the market to "see you building fast," underscoring the need to marry product velocity with effective distribution. This strategy directly addresses the challenge in AI where underlying models and technologies are constantly evolving, making long-term product differentiation difficult.

The new paradigm demands that founders actively showcase their development velocity and market traction, transforming activities like hackathons into public spectacles and leveraging viral social experiments. According to Kim, this "building in public" fosters community, invites feedback, and raises the stakes for competitors. This proactive engagement ensures that rapid innovation translates into market mindshare and user adoption, which he considers vital for breaking through the noise.

For investors like Kim, key metrics now extend beyond traditional user growth and revenue to include "shipping speed" and revenue retention. He views consistent, rapid product iteration as a compounding advantage, enabling companies to outpace rivals and establish a durable lead. This focus on velocity signals a departure from older investment frameworks that prioritized meticulously crafted products developed over extended timelines.

The a16z partner cited the firm's investment in Cluely AI, which gained notoriety for its provocative marketing and swift market penetration, as a prime example of this strategy in action. Similarly, Kim's aggressive pursuit of an investment in ElevenLabs, involving immediate travel to secure the deal, underscores the urgency and conviction required in this fast-paced market. These instances illustrate how speed in both building and securing capital creates a new form of defensibility.

This evolving philosophy is shaping investment decisions and the operational strategies of emerging AI leaders, highlighting that visibility is as crucial as invention in the current technological landscape. As Kim succinctly put it, reflecting on the importance of market awareness: "Because if a tree falls in the forest and no one hears it, did it make a sound?"