Investors Beware: The Donut-Charts-Equal-Strategy Scam Is Getting Worse!

If your so-called 'AI moat' can be summed up in a donut chart, it’s probably not a real moat.

Author

Glenda Carnate
December 05, 2025

Read time: 2.5 minutes

The truth about strategy is simple: if you need a donut chart to make it look strong, it likely isn’t.

It’s a familiar scene: A founder begins their pitch, opens the slide deck, and gets to the 'AI moat' section, where a shiny donut chart appears on the screen.

The mood in the room changes. Investors lean back and analysts look skeptical. Instead of showing real competitive advantage, the founder presents a donut-shaped chart with labels like 'unique positioning,' 'model defensibility,' and 'secret sauce,' divided into neat sections.

This isn’t a real strategy. It’s fundraising based on visuals, using a circular graphic to cover up what should be explained with a clear story and solid numbers.

6 Truths Every “AI Moat” Slide Must Include:

  1. Real defensibility.
    Show your training data, distribution edge, partnerships, or intellectual property... not just good feelings.

  2. Clear explanation of your system’s structure.
    Explain how it works, not just how it looks.

  3. Proof that people are actually using your product.
    Metrics like uetrics like usage, retention, and real-womatter more than flashy visuals than flashy visuals.

  4. Insight into how you compare to others.
    Show how you outperform competitors, not just how you present your slides.

  5. Demonstrate the maturity of your model.
    Include benchmarks, evaluations, and evidence of ongoing improvements.

  6. Build a moat that stands out to investors.
    Offer something competitors can’t copy in six months.

💡Key Takeaway: 

A donut chart won’t protect your AI moat. In fact, it just makes its weaknesses more obvious.

As one meme puts it: Due diligence is missing, and confidence is just for show.

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👉 COMMENT: What’s the most questionable “AI moat” explanation you’ve ever heard?

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