Comment by sanderjd

I mostly agree with this!

But I also think there are multiple ways to differentiate. There is at the very least: "intelligence", price, latency, throughput, reliability. It's not clear to me yet what this looks like, but maybe there is also a services and integration level of differentiation. And then there is the universal stuff: sales, marketing, branding. And then on the other side of the ledger there is operational efficiency, management capability, cost of capital, that kind of stuff.

I mean, there is no kind of "model quality" difference between AWS and GCP or between Delta and Southwest or between Wal-Mart and Costco, etc. but all of these businesses remain viable in very competitive markets.

I totally agree that the level of investment / capex is not sustainable though! But I think what's going to happen is that it is not going to be sustained, while AI continues past that point as a viable business (but maybe with different specific companies leading that industry).