Let’s say you have a nice niche business opportunity. You’ve validated there’s high demand.
If you want economies of scale, this business opportunity better require substantial fixed costs.
Obvious business opportunities with low fixed costs and without other defensibilities quickly become super competitive. All profits get eroded out.
But with high fixed costs you have a chance of attaining economies of scale.
Then it comes down to how quickly you can scale in your niche. The more valuable the business opportunity the faster you’ll have to scale to keep potential challengers at bay.
The obvious high fixed-cost, scalable opportunity for the next wave of products built on AI?
I think it's super niche, extensive, high-quality proprietary data. It's not easy for others to replicate. And it's the foundation for any high-quality niche AI system.