Google figured this out with their paper from 2023, We have no moat and neither does OpenAI. The moat now is the harness and being able to recursively self improve from RLHF, a great example is how Grok used to be pretty bad but since SpaceX bought Cursor, they used that data to train Grok 4.5 which is now very competent at coding and even exceeds frontier models in certain benchmarks.
https://www.semianalysis.com/p/google-we-have-no-moat-and-ne...