What this reinforces is that unlike with previous big innovations (cloud, iphone, etc), incumbents will not sit on their laurels with the AI wave. They are aggressively integrating it into their products which (1) provides a relatively cheap step function upgrade and (2) keeps the barrier high for startups to use AI as their wedge. I attribute the speed at which incumbents are integrating AI into their products to a…
People seem to take offense at this idea, but the proof is in the pudding. Every week there's a new company with a new model coming out. What good did Google's "AI Talent" do for them when OpenAI leapfrogged them with only a few hundred people?
It's difficult to achieve high margins when barrier to entry is low. These AI companies are going to be moreso deflationary for society rather than high margin cash cows as the SaaS wave was