3 ms·

Beware that there’s also a ton of bias when something is analyzed internally. As Upton Sinclair once said “It is difficult to get a man to understand something,

by gerad 3y ago

Beware that there’s also a ton of bias when something is analyzed internally. As Upton Sinclair once said “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” In the case of this analysis - it sounds great but it’s wrong. OpenAI has a huge moat. It has captured the mind share of the world. The software it has shipped is dramatically better than anything anyone else has shipped (the difference between useless and useful). We’ll see if folks catch up, but the race is currently OpenAI’s to lose.

crazygringo 3y ago
Mind share is not a moat. And market share or being first is not a moat. Moats are very specific things such as network effects, customers with sunk costs, etc. The very point of the term "moat" is to distinguish it from things like market share or mind share. The article is correct, OpenAI has no moat currently.
- gerad 3y ago
  What’s Google’s moat? Mind share and being dramatically better than the competition is indeed a moat. Trust me mind share is incredibly hard to gain in this day and age.
  - vigilantpuma 3y ago
    Google, according to the article, has no moat either.
  - crazygringo 3y ago
    > Mind share and being dramatically better than the competition is indeed a moat. That's literally the opposite of what "moat" means, so no. You can't just make up different definitions for accepted terms if you want to have a productive conversation with anyone.
  - omeze 3y ago
    In AI? None (according to article). For their search engine? The distribution deals they have with Apple & android carriers for defaulting to them, and Chrome defaulting to them. If another search engine wanted to even release a product, theyd have to cross the distribution moat (possible on the web, just hard). For ads, the moat is their network of publishers. Competing ad marketplaces need to build a compelling publisher network to attract advertisers and compete for pixel space on publisher domains.

by gerad 3y ago

crazygringo 3y ago

Mind share is not a moat. And market share or being first is not a moat. Moats are very specific things such as network effects, customers with sunk costs, etc. The very point of the term "moat" is to distinguish it from things like market share or mind share. The article is correct, OpenAI has no moat currently.

gerad 3y ago
What’s Google’s moat? Mind share and being dramatically better than the competition is indeed a moat. Trust me mind share is incredibly hard to gain in this day and age.
- vigilantpuma 3y ago
  Google, according to the article, has no moat either.
- crazygringo 3y ago
  > Mind share and being dramatically better than the competition is indeed a moat. That's literally the opposite of what "moat" means, so no. You can't just make up different definitions for accepted terms if you want to have a productive conversation with anyone.
- omeze 3y ago
  In AI? None (according to article). For their search engine? The distribution deals they have with Apple & android carriers for defaulting to them, and Chrome defaulting to them. If another search engine wanted to even release a product, theyd have to cross the distribution moat (possible on the web, just hard). For ads, the moat is their network of publishers. Competing ad marketplaces need to build a compelling publisher network to attract advertisers and compete for pixel space on publisher domains.