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December 20254 min read

Why AI Infrastructure Startups Need to Build Patent Portfolios Now

#AIInfrastructure#Patents#StartupStrategy#VCFunding#IPProtection

If you're building foundational AI technology—whether it's a new model architecture, training optimization technique, or inference acceleration method—you're sitting on potentially valuable intellectual property. But here's the uncomfortable truth: without patents, you may have no legal recourse when a well-funded competitor replicates your innovations.

The Commoditization Problem

AI infrastructure is commoditizing faster than almost any technology in history. What took years to develop can be reverse-engineered in months. Open-source models have democratized access to cutting-edge techniques, and the talent pool is fluid—engineers move between companies, carrying knowledge with them.

In this environment, trade secrets offer limited protection. Your proprietary training data might be unique, but your architectural innovations? Those can be inferred from published papers, API behavior, or simply by hiring your former employees.

What Patents Actually Protect

Patents protect the specific methods and systems you've developed—not abstract ideas, but concrete technical solutions. For AI infrastructure companies, this might include:

  • Novel attention mechanisms or transformer architectures
  • Training optimization techniques that reduce compute costs
  • Inference acceleration methods for edge deployment
  • Data preprocessing pipelines that improve model quality
  • Techniques for reducing hallucinations or improving accuracy

The VC Perspective

Sophisticated investors increasingly view patent portfolios as a signal of technical depth and defensibility. When conducting due diligence on AI infrastructure companies, VCs want to understand: What stops a better-capitalized competitor from simply copying your approach?

A thoughtful patent strategy demonstrates that founders understand their competitive landscape and have taken concrete steps to protect their innovations. It also provides leverage in future M&A scenarios—acquirers pay premiums for companies with strong IP portfolios.

Starting Your Patent Strategy

The best time to start building a patent portfolio is before you need it. Patent applications typically take 2-3 years to issue, meaning the protection you file for today won't be enforceable until well after your current funding round.

Work with patent counsel who understands AI technology—not just the legal process, but the underlying computer science. They should be able to identify patentable innovations in your codebase, help you document inventions properly, and develop a portfolio strategy aligned with your business goals.

Ready to discuss your AI startup's patent strategy? Get in touch for a consultation.

Why AI Infrastructure Startups Need to Build Patent Portfolios Now | Fredrick Tsang