First of all, the proper term for the tool in question is a CNC mill, or "CNC machining center" as it's sometimes termed by the manufacturers of such machines.

First of all, the proper term for the tool in question is a CNC mill, or "CNC machining center" as it's sometimes termed by the manufacturers of such machines. A solid block of material enters, and the finished product emerges. Inside the CNC mill, a variety of rapidly spinning milling cutters (think of an intelligent Dremel tool) cut out the part. The work piece is stationary (for the most part) and the tool head moves. A typical CNC machining center will have an automatic tool changer so that it can cut with a variety of different milling cutters (bits) as it performs various cutting operations. In contrast, a lathe (manual or CNC) rotates the work piece (typically a cylindrical piece of metal, or bar stock, such as square or hex stock) and a non-rotating cutting tool trims excess material. Now with that out of the way, the story is a bit suspect. What's to prevent the competition from buying their own factory with 10,000 CNC machining centers? Or bankrolling their preferred vendor to do so?