Earlier quoted context omitted.
> If the gains don't plateau, well then we're obsolete anyways I think there's room for more nuance here. It could also be a situation of diminishing returns but not a sharp plateau. That could favour the big players. I think I find that scenario most likely, at least in between major breakthroughs.
Well diminishing returns will have the same effect as a plateau. If you're on a log with your (much cheaper, Chinese) competition, then your advantage is very quickly microscopic.
Search engine tech isn't that much of a secret nowadays? Still it's prohibitively expensive for almost everyone to build a competitive search engine. What if really good AI turns out to be more like that (both training and inference)