Comment by subhobroto
17 hours ago
> Why rent the model to build a profitable company with when you could just take all that profit for yourself?
You're describing a standoff at best and a horrible parasitic relationship at worst.
In the worst case, the supplier starves the customer of any profit motive and the customer just stops and the supplier then has no business to run.
This has happened a few times in the past and is by 2026, well understood as a way to bankruptcy.
That has always been the beauty of free markets - it's self healing and calibrating. You don't need a big powerful overseer to ensure things are right.
Competing with customers is a way to lose business fast.
For example:
- AWS has everything they need to shit out products left, right and center. AWS can beat most of their partners and even customers who are wiring together all their various products tomorrow if they wanted. They don't because killing an entire vertical isn't of any benefit to them yet. Eventually they will when AWS is no longer growing and cannot build or scale any product no matter how hard they think or try. Competing with their customers is their very last option.
- OpenAI/Anthropic/Google isn't going to start competing against the large software body shops. Even if all that every employee at TCS does is hit Claude up, Anthropic isn't going to be the next TCS - it's competing with their customers.
> That has always been the beauty of free markets - it's self healing and calibrating. You don't need a big powerful overseer to ensure things are right.
If by "self healing and calibrating" you mean 'evolve to a monopoly and strongarm everybody to do exactly what you want whilst removing all pressure on the quality of your product', then yes, that is the "beauty" of free markets.
That is the stable state of free markets. Antitrust regulation and enforcement only barely manages to eke out oligopolies and even then they are often rife with collusion and enshittification.
> evolve to a monopoly and strongarm everybody to do exactly what you want whilst removing all pressure on the quality of your product
This certainly isn't true of small businesses and the local mom-and-pop shops in your area.
For free markets to work, small businesses need the ability to thrive and starting one should be exceptionally easy.
What has unfortunately happened in a lot of developed countries, is that in order to regulate the very large companies you're upset about, governments have made it nearly impossible to start small businesses to act as competition. That makes it even easier for companies to consolidate and evolve into a monopoly, strong-arming everyone - the exact opposite effect of what those regulations were hoping to fix.
Are there small businesses in your area like the 1 or 5 person HVAC or cleaning or landscaping or breakfast company that you disdain as much as you disdain UnitedHealthCare?