Earlier quoted context omitted.
AI model providers have zero "moat", clients change them as they see fit. This week ChatGPT, next week Claude. The real value is and going to be in hardware - as long as China doesn't enter the GPU/RAM race. I increasingly see AI investment, generally speaking, as a lost cause. It has very little chance to pay off.
Yup. Model capabilities seem to keep converging quickly, not leaders breaking away for long. Frontier labs are racing towards SaaS commoditization at incredible speed. And while there might possibly be $Trillions in productivity gained from their use, there's no reason to think those gains get captured by the model makers or inference providers at this point. Maybe the Claude or ChatGPT desktop apps will dominate as…
Yeah it almost certainly won't be captured by them. That value is going to be captured by the folks/companies that shrink wrap the capabilities into a nice SaaS or other tool, that a business can buy off the shelf and give to their employees.
The model makers are on a fast track to just becoming dumb pipes, not unlike ISPs.