Comment by gentooflux
1 day ago
The number of AI companies there can be is absolutely hard-limited by infrastructure. The ones which exist currently are racing like hell to horizontally integrate everything from network to power and water for themselves
That's nonsense. You might not be able to afford to enter the market but that's not at all the same as a physical constraint capping the number of competitors.
You might not be able to afford to put up power lines or build a road, but that doesn't mean you physically cannot. By your logic there are no natural monopolies
If I want to service 1234 sesame st from my physical location with power lines there are a very limited number of routes I can take. The limited physical space quickly becomes crowded, duplicate physical infrastructure of that nature is highly inefficient, and there's a (completely pointless) negative impact on society to accommodate the constant installation and servicing.
Commodity hardware installed in a commodity building on commodity land using commodity power hooked up to a commodity network isn't the same thing. By your logic anything expensive or inconvenient is a natural monopoly. I believe the term you were looking for was "high barrier to entry".