SHOW / EPISODE

Data Network Effects: When Usage Really Makes AI Better

12m | Sep 23, 2026

Every day, one AI code editor gets more than 400 million tiny votes: did you press Tab to accept a suggestion or not? It retrains on those votes many times a day. Meanwhile a leading legal AI company quietly moved away from betting on its own custom model. This episode asks when "our product gets better the more people use it" is a real moat and when it's just a story. We cover why most data advantages are scale effects that fade, and how new foundation models can erase a custom-model lead. We also cover the kinds of data that really do compound: product-specific feedback loops, true cross-customer networks like fraud detection, your own evaluations, and customer context.

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