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Your Uber/AirBnB/Wework all have physical base units with ascending costs due to inflation and theoretical economies of scale.

AI models have some GPU constraints but could easily reach a state where the cost to opperate falls and becomes relatively trivial with almost no lowerbound, for most use cases.

You are correct there is a race for marketshare. The crux in this case will be keeping it. Easy come, easy go. Models often make the worst business model.



Probably why Altman has been talking so much about how dangerous it is and how regulations are needed. No natural moat, so building a regulatory one.


Only hundreds of billions at stake if successful.




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