Comment by gorgoiler
1 hour ago
Doesn’t the “no moat” argument break down when you consider their brand strength, their distribution expertise in running inference at scale, and the future value of being able to train on all their customers’ data?
1 hour ago
Doesn’t the “no moat” argument break down when you consider their brand strength, their distribution expertise in running inference at scale, and the future value of being able to train on all their customers’ data?
You can download some weights and run your own model on your own device, and apparently only be a few months behind SOTA. While things are cheap, people will pay for the premium product, but if they ever try to crank up the prices, there's a fallback that is quite competitive.
As for training, sure, they can do that but they get distilled by the open weight guys. Plus, AI is useful even if it freezes at today's level. I can still find use for a local AI that never improves, it's good enough to do a bunch of tasks.