Comment by Sateeshm

> Everyone is talking about it, all the time, nonstop! How is that not a network?

Network effect in this context means the product is successful primarily because everyone else is using it. Not easy to compete with Instagram/Tiktok because you need most users to use your new app, not just a few. Amazon can only deliver fast because they have a huge delivery network, because most people use Amazon.

No such effect or moat exists for AI companies. In fact, it is the opposite. Same prompt will give you very similar results in any AI product.

You can't compete with amazon now, even with a better product. But you can easily kill AI companies if you have a better model.