> There is no technical moat in this field, and so OpenAI is the epicenter of an investment bubble. Thus, effectively, OpenAI is to this decade’s generative-AI revolution what Netscape was to the 1990s’ internet revolution. The revolution is real, but it’s ultimately going to be a commodity technology layer, not the foundation of a defensible proprietary moat. In 1995 investors mistakenly thought investing in Netscape was a way to bet on the future of the open internet and the World Wide Web in particular.
OpenAI has a short-ish window of opportunity to figure out how to build a moat.
"Trying to spend more" is not a moat, because the largest US and Chinese tech companies can always outspend OpenAI.
> There is no technical moat in this field, and so OpenAI is the epicenter of an investment bubble. Thus, effectively, OpenAI is to this decade’s generative-AI revolution what Netscape was to the 1990s’ internet revolution. The revolution is real, but it’s ultimately going to be a commodity technology layer, not the foundation of a defensible proprietary moat. In 1995 investors mistakenly thought investing in Netscape was a way to bet on the future of the open internet and the World Wide Web in particular.
OpenAI has a short-ish window of opportunity to figure out how to build a moat.
"Trying to spend more" is not a moat, because the largest US and Chinese tech companies can always outspend OpenAI.
The clock is ticking.