In the field of artificial intelligence, much of the attention today is focused on language models, chips, and infrastructure. However, an increasingly valid investment thesis is emerging strongly: the true value of AI lies in applications, particularly in vertical AI software.
During the AI Week event, the international fund Langoustia Capital explained how the market is shifting from infrastructure to products: it’s not just about the power of AI, but where and how it is applied.
From hardware to software: a lesson from the ’90s
In the ’80s and ’90s, the technological boom was dominated by hardware companies like HP, IBM, and Cisco, which produced the servers, mainframes, and networks for the nascent digital era. However, over time, those infrastructures became replaceable, margins shrank, and the competitive advantage narrowed.
The real winners? The software platforms:
Google, which has revolutionized the search and monetization of information;
Microsoft, which has created a scalable operating ecosystem;
Amazon, which has innovated e-commerce and cloud computing.
The pattern repeats today with AI. Today the hype is about Nvidia, OpenAI, and Anthropic, but like yesterday’s hardware, these elements are also destined to become commodities.
What is vertical AI software
The vertical AI software is an application of artificial intelligence designed to solve specific problems in a well-defined sector. Unlike generalist solutions, these software are created to be integrated into the daily workflows of professionals, companies, and industries.
Examples of vertical AI already on the market:
Harvey, for automated legal consulting;
TaxGPT, AI copilot for tax advisors and accountants;
Toast, software for the restaurant industry that integrates POS and operational management;
ServiceTitan, management platform for craftsmen and technicians;
Cybergrant, startup founded by Italians for cybersecurity.
These solutions combine sector expertise and intelligent automation, offering efficiency, savings, and scalability.
Why vertical AI software is the new frontier of innovation
Langoustia Capital argues that the next giants of AI will not only be those who build models, but those who know how to apply AI in a targeted and scalable way.
Some reasons why this thesis is gaining strength:
The applications are defensible: they require domain knowledge and relationships with real clients.
Vertical solutions scale well, thanks to the standardization of flows.
The ritorno sugli investimenti è altissimo: Toast has generated a return of 160x for the early investors.
With these premises, vertical software + AI becomes the most promising combination for funds, startups, and companies seeking real growth.
Langoustia Capital: investing in AI applications
Langoustia Capital is a fund specialized in the application layer of artificial intelligence, namely in the development and support of AI-powered software solutions.
Based in San Francisco, Miami, New York, and Milan, the fund is backed by the Del Vecchio family (Luxottica) and aims to connect the best European and US startups.
In just one year, it has:
invested in 11 vertical AI startups;
achieved an IRR greater than +150%;
built a global network of venture partners and co-investors.
Objective: to discover and grow the new “Meta” and “Amazon” of the AI world, not in the infrastructure, but in the intelligent applications that transform real sectors.
Conclusion: from generalist AI to specialized software
The AI market is crowded, but those who can build concrete, integrable, and measurable vertical products will emerge as the true winners.
Langoustia Capital is focusing precisely there: on artificial intelligence that solves specific problems, creates real value, and offers sustainable returns.
The future is not in laboratories, but in the real world. And it passes through software.
