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The problem is, beside their size, they have not moat to compete in AI space. Their data centers are spread across the world in other companys DCs (btw do they
by piterrro 2mo ago
The problem is, beside their size, they have not moat to compete in AI space. Their data centers are spread across the world in other companys DCs (btw do they own any DC actually from top to bottom?).
- dgellow 2mo agoSide question: does anyone have a moat in the AI industry? AI vendors for sure do not. Hyperscalers don’t seem to have one. Datacenter companies are in an industry that is more difficult to enter but don’t have a moat per se. Same for manufacturers of HBM and other hardware. NVIDIA is maybe the only player with an actual moat thanks to CUDA & co
- piterrro 2mo agoCompanies specialized in building DCs and AI labs specialized in niche models?
- dgellow 2mo agoActually, not DC builders themselves, but companies that manufacture fairly specific parts used by DCs, like the massive gas turbines they’ve been using. I’m not familiar with that part of the industry but would assume that has to be a business with a pretty big moat