Investment

Not all AI problems are created equal. Some run out of work. Others never do. The difference determines the size of the opportunity.

I’ve been mapping AI businesses across two axes. The first: open loop versus closed loop. Closed loop systems validate their outputs. An AI coding agent runs tests, checks if the code compiles, confirms the feature works. Open loop systems generate without validation. An AI writing marketing copy can’t prove the copy sells product. The second axis: finite versus infinite demand. Finite demand exhausts. A customer support team handles a fixed number of tickets per day. Infinite demand never ends. There’s always more software to build, more content to create.