Compare moats
Up to three covered companies, band by band. Every call is a curated editorial judgment, never a disclosed figure — and every band carries its cited basis.
| SoundHound AI | Applied Digital | CrowdStrike | |
|---|---|---|---|
| Moat rating | narrow The FY2025 10-K describes a real but limited edge: after an automotive design win a competing product may not be able to displace the winner because it is 'very unlikely that a customer will change complex technology until a product model is revamped', and it claims technical barriers to entry and cites over 359 granted and over 102 pending patents. The same filing concedes intense, price-sensitive competition from larger rivals that may be able to offer competing functionality 'at lower cost or free of charge' within larger offerings, possible pricing pressure from OEMs, master service agreements customers can terminate on six months to one year of prior written notice, and, to date, substantial net losses and negative cash flows from operating activities. The stickiness is real, but it has not yet produced profits. | none The FY2026 10-K (filed 2026-07-29) shows contracted revenue, not a demonstrated competitive edge. About 1,410 MW is leased under 15-year take-or-pay, non-cancellable base terms worth about $36.2 billion, but only about 100 MW of the roughly 1.5 GW that is contracted and either operating or under construction was operating and earning revenue at May 31, 2026, and Item 1A says "lessees may have the right to terminate applicable leases if there are significant delays in construction." Item 1A also concedes "We do not have the resources to compete with larger providers of similar products or services at this time," and the Competition section names 13 power-advantaged developers the company competes with. Signed leases give revenue visibility, but the filing does not show a durable advantage. | narrow Narrow rather than wide because the FY2026 10-K argues both ways and its own risk factors are the harder side: it describes a self-reinforcing data advantage and says "we do not believe any of our competitors currently have a true platform offering equivalent to the Falcon platform", but the same filing calls the market for security and IT operations solutions "intensely competitive, fragmented", warns that "Competitive pricing pressure may reduce our gross profits", and still carries the July 19 Incident as having "had, and is expected to continue to have, an adverse effect on our business, sales, customer and partner relations, reputation" more than two years after it occurred. |
| Moat type | switching costs The stickiest advantage in the 10-K is design-win lock-in: a product that did not win an OEM or Tier-1 design may not be able to displace the winner until the customer begins a new selection process, because the 10-K says customers are very unlikely to change complex technology until a product model is revamped. Private domains make SoundHound a long-term "partner" (the 10-K's quotation marks) because subscribing customers retain the ability to iterate and update their content on its platform. Patents are the weaker source: the filing warns that competitors 'may independently develop technologies that are substantially the same or superior' without infringing its rights. | none The 10-K claims three advantages: power-advantaged sites (it believes securing power and interconnection ahead of demand is 'the principal constraint on new HPC capacity and a core differentiator for us from many of our competitors'), a standardized 'franchise-style' design, and hyperscaler master service and master telecom service agreements 'that are difficult to obtain.' The filing does not show any of them to be durable. Its Competition section says competition 'centers on securing and developing sites with access to large-scale, reliable, and cost-competitive power and interconnection' and names 13 power-advantaged developers going after the same leases, and Item 1A concedes it lacks the resources to compete with larger providers. Signed leases are take-or-pay and non-cancellable, so a tenant leaving for convenience owes 'the full remaining contractual value,' but that is contractual lock-in on each lease rather than a moat source, so no moat type is assigned. | network effects The 10-K states the mechanism directly: "The more data that is fed into our Falcon platform, the more intelligent the AI Security Cloud becomes, the stronger our ability to anticipate and counter evolving adversary tradecraft, and the more our customers benefit, creating a powerful network effect that increases the overall value we provide." |
| Leadership | behind The 10-K calls SoundHound 'a global leader in conversational intelligence' with 'best-in-class speed and accuracy', but these are the company's own claims and it gives no share figure. Apart from the company's own positioning, such as its belief that some legacy vendors offer dated technologies, the 10-K's comparisons with rivals run against SoundHound: some current or potential competitors are large technology companies that have 'significantly greater financial, technical and marketing resources than SoundHound does', they may be able to respond more rapidly to new or emerging technologies, and its large competitors may have greater access to customer data, which the 10-K says provides them with a competitive advantage in developing new products and technologies. | behind The 10-K makes no leadership claim and gives no ranking or share figure. Item 1A concedes "We do not have the resources to compete with larger providers of similar products or services at this time" and that some rivals have "substantially greater liquidity and financial resources than we do." Its Competition section places APLD against established operators (Digital Realty, Equinix), hyperscalers that build their own capacity, independent developers and 13 named power-advantaged developers (IREN, Cipher Digital, TeraWulf, Hut 8, Riot, CleanSpark, HIVE, Core Scientific, Bitdeer, Galaxy Digital, Fermi, Keel Infrastructure, MARA). | co leader Co-leader rather than clear leader because the only claim of platform primacy available is the company's own ("we do not believe any of our competitors currently have a true platform offering equivalent"), while the same 10-K describes a fragmented market and lists seven distinct categories of competitor, from legacy antivirus to network security, cloud security, identity and legacy SIEM vendors. |
| Pricing power | weak The 10-K flags price sensitivity among customers, rival alternatives offered 'at significantly lower costs or free of charge', and the strong purchasing power of major OEMs, under which SoundHound may be expected to quote fixed prices or be forced to accept annual price-reduction commitments. GAAP gross margin, computed from the 10-K's revenue and cost of revenue, fell from 75.4% (FY2023) to 48.9% (FY2024) and 42.4% (FY2025). The company attributes both declines primarily to acquisitions: the FY2024 10-K cites Amelia and SYNQ3, including SYNQ3's lower-margin call-center agent business and amortization of acquired intangibles, and the FY2025 10-K cites Amelia and Interactions, including $14.1M and $0.8M of amortization of acquired intangibles. Neither passage attributes the decline to pricing. The Q2 2026 release (8-K filed 2026-08-05) reports GAAP gross margin up 6.1 points year over year to 45.1%, with non-GAAP gross margin flat at 58.4%. | weak Item 1A says "Due to the limited number of hyperscalers, we expect that a limited number of customers will continue to account for a high percentage of our revenue for the foreseeable future," and that if customers' equipment usage declines or they discontinue use of its facilities, APLD "may be compelled to lower our lease prices in some instances or risk losing a significant customer." One customer was 59% of FY2026 revenue from continuing operations. Take-or-pay, non-cancellable terms protect contracted revenue over the base term, and Note 19 reports a $39.1M HPC Hosting segment profit on $385.3M of segment revenue in FY2026, but those terms are agreed with a small group of concentrated buyers. | moderate The 10-K's risk factors state that "Competitive pricing pressure may reduce our gross profits" and that competing successfully may require "aggressive pricing", which is the company's own case against strong pricing power; the offsetting factor it cites is module consolidation on one sensor. |
| Summary | SoundHound sells independent, white-label voice and agentic AI to carmakers, TV/IoT makers, restaurants and enterprises. Its 10-K pitches this as the alternative to big-tech assistants that take over a brand's users and data. Its defensibility rests mainly on automotive design wins, which the 10-K says customers are very unlikely to change until a product model is revamped. It layered on the Amelia (Aug 2024) and Interactions (Sep 2025) acquisitions, and it completed the LivePerson acquisition on 2026-09-04 per that day's 8-K, whose press release cites a strengthened IP portfolio of over 750 patents. Against that, the 10-K lists rivals with far greater resources and data that may be able to offer competing functionality at lower cost or free, customers that may develop competing products, competitors that may build their own solutions on open-source software, and possible OEM pricing pressure. The 10-K reports substantial net losses and negative operating cash flows to date, and GAAP gross margin fell from 75.4% (FY2023) to 42.4% (FY2025), a decline the company attributes mainly to acquisition mix and amortization. The advantage looks narrow and not yet proven economically. | Applied Digital designs, builds and operates purpose-built, liquid-cooled HPC data centers, which it calls 'AI factories', and leases the capacity to CoreWeave and investment-grade hyperscalers. At May 31, 2026 its 10-K lists five campuses (Polaris Forge 1-3 and Delta Forge 1-2) with about 1,410 MW contracted under roughly 15-year take-or-pay, non-cancellable leases worth about $36.2 billion over the base terms. The filing claims three sources of advantage: it controls power-advantaged sites, it uses a standardized 'franchise-style' design built to deliver about 150 MW in about 14 to 18 months, and it holds hyperscaler master agreements that are 'difficult to obtain.' The same document shows how early the company is. About 100 MW was operating and earning revenue. One customer was 59% of FY2026 revenue from continuing operations. It competes with Digital Realty, Equinix, hyperscalers that build their own capacity and 13 named power-advantaged developers, and it concedes that it lacks the resources to compete with larger providers. Signed leases give long-dated revenue visibility, but the filing does not show a durable competitive advantage. | A single lightweight sensor collects enterprise data once and reuses it across 33 cloud modules, and the pooled telemetry trains the models every customer is then defended by — the 10-K calls this crowdsourced, high-fidelity data "cloud-scale AI" and treats it as the fundamental differentiator from competitors. |
| Chain position | Voice and agentic AI layer that OEMs, restaurants and enterprises embed under their own brand. Per the 10-K it combines its domains with third-party LLMs such as OpenAI's ChatGPT and runs on hosting facilities and third-party public clouds. | Developer and landlord of power-advantaged, liquid-cooled AI data-center capacity, leased long-term to CoreWeave and investment-grade hyperscalers. | AI-native security platform — an adopter and reseller of AI rather than a supplier of AI infrastructure. |
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| Long-horizon vote | -0.15 at weight 0.20 · swarm neutral Editorial prior, not backtested. | -0.20 at weight 0.20 · swarm neutral Editorial prior, not backtested. | +0.13 at weight 0.20 · swarm neutral Editorial prior, not backtested. |