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> Sure, but none of that is moat. Not for foundation models, and not when considered individually. But as long as OpenAI continues killing it with foundation m

> Sure, but none of that is moat. Not for foundation models, and not when considered individually. But as long as OpenAI continues killing it with foundation models, continues moving up the stack with applications built on those models, and continues establishing market-leading parterships/integrations with companies like Microsoft and Apple, that's a moat.

moofer9 2y ago
That’s…not a moat. Here, I’ll let chatgpt tell you: True moats often involve factors like network effects, brand strength, intellectual property, or significant operational efficiencies that are harder to replicate. Superman doesn’t have a competitive moat, even if he manages to be the strongest and produce random powers out of nowhere - other superheroes pop up and monopolize various cities despite being nowhere near as powerful. Why? They are the recognizable local brand. That’s a moat. It’s not something Superman can easily do anything about. Heck, Superman’s strength even makes him unrelatable to most humans, actively harming him in the brand area.
- CharlesW 2y ago
  The Superman analogy is fun, but moats are rarely that simple. About the real-world scenario I described, ChatGPT generated: "The combination of OpenAI’s advancements in foundation models, application development, and strategic partnerships collectively creates a robust moat for several reasons: [list of reasons] "Together, these elements form a substantial moat. OpenAI’s cutting-edge models create a technological barrier, its applications generate a sticky user base, and its partnerships expand its influence and operational support, making it difficult for competitors to replicate its entire ecosystem. This combination of technological, user-based, and strategic advantages creates a robust, multi-layered moat around OpenAI in the competitive AI landscape."

moofer9 2y ago

That’s…not a moat. Here, I’ll let chatgpt tell you: True moats often involve factors like network effects, brand strength, intellectual property, or significant operational efficiencies that are harder to replicate. Superman doesn’t have a competitive moat, even if he manages to be the strongest and produce random powers out of nowhere - other superheroes pop up and monopolize various cities despite being nowhere near as powerful. Why? They are the recognizable local brand. That’s a moat. It’s not something Superman can easily do anything about. Heck, Superman’s strength even makes him unrelatable to most humans, actively harming him in the brand area.

CharlesW 2y ago
The Superman analogy is fun, but moats are rarely that simple. About the real-world scenario I described, ChatGPT generated: "The combination of OpenAI’s advancements in foundation models, application development, and strategic partnerships collectively creates a robust moat for several reasons: [list of reasons] "Together, these elements form a substantial moat. OpenAI’s cutting-edge models create a technological barrier, its applications generate a sticky user base, and its partnerships expand its influence and operational support, making it difficult for competitors to replicate its entire ecosystem. This combination of technological, user-based, and strategic advantages creates a robust, multi-layered moat around OpenAI in the competitive AI landscape."