Comment by BobbyJo

I now see AI as part 2 of the CPU evolution. I think there are lots of correlations we can draw on looking at it that way:

1) Lots of players enter at the start because there are no giant walled gardens yet. 2) Being best in class will require greater and greater capex (like new process nodes) as things progress. 3) New classes of products will be enabled over time depending on how performance improves.

There is more there, but, with regard to this post, what I want to point out is that CPUs were pretty basic commodities in the beginning, and it was only as their complexity and scale exploded that margins improved and moats were possible. I think it will play out similarly with AI. The field will narrow as efficiency and performance improves, and moats will become possible at that point.