Why 80% of Enterprise Data Stays Behind Firewalls
Studio VC's Joseph Coyne on why public LLMs hit a wall at enterprise firewalls and how workflow software builds Tesla-style data moats.
Why 95% of AI Projects Fail, Anthropic still at $2T?, and Why AI Is Still in the First Inning
With David Weisburd, Joseph Coyne · Friday, November 6, 2026
Studio VC Co-Founder and Managing Partner Joseph Coyne sits down with host David Weisburd to explore why enterprise AI remains in its earliest innings. They examine why 95% of enterprise AI pilots fail, how proprietary data behind corporate firewalls creates enduring moats, and how physical AI applications in healthcare and motion capture are paving the way for next-generation robotics. Coyne and Weisburd also analyze venture valuations, business model transitions from SaaS to usage-based pricing, and how to underwrite foundation models like Anthropic and OpenAI.
Key takeaways
- More than 80% of the world's data remains locked behind corporate firewalls, out of reach for public foundation models such as Anthropic and OpenAI. Read more →
- Roughly 95% of enterprise AI pilots fail because corporate buyers deploy generic foundation models against standard workflows without proprietary data behind the firewall. Read more →
- Late-stage foundation model rounds require massive market capture assumptions that clash with near-zero switching costs across major LLMs. Read more →
- Ninety-five percent of enterprise AI pilots fail to reach production because pure technical tools fail to address legacy workflows and regulatory constraints. Read more →
4 articles from this episode
Why Physical AI Wins on Proprietary Sensor Data
Studio VC's Joseph Coyne explains how real-world sensors at Inspiren and Evercoast build the data moats required for the $50 trillion physical AI market.
Underwriting Anthropic and OpenAI: The Four S-Curves of AI
Coatue's Lucas Swisher maps four S-curves for AI adoption, while Studio VC's Joseph Coyne warns of zero switching costs in foundation models.
Vertical AI: Why Domain Veterans Beat Pure Engineering
Studio VC's Joseph Coyne on why 95% of enterprise AI pilots fail and why industry veterans with deep networks outperform pure engineering.
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