“We Have No Moat, And Neither Does OpenAI,” a supposedly leaked document from Google, makes some interesting points. The competitive landscape shifts, and so do the moats. What is no longer a moat Data is no longer a moat. For example, GPT-3 and Stable Diffusion were trained on public data sets by companies or groups with zero proprietary data. Now,
With disappearing moats, regulation battles might become more intense as a last attempt to grasp at anything that can save the sinking ship.
If AI lives up to its expectations, then I would expect moats to continually be harder to build. AI is the machine to destroy moats, as at its core it is essentially a skill/technology replication machine. As long as it can actually accomplish that end, there will unlikely be any moats that can survive.
I described this as the "AI Clone Wars", "Anything you create can be replicated without investment cost while also being unique in design as well as delivering the same function or experience. Intellectual property laws essentially have no function in this new environment and there isn't an obvious remedy" - https://dakara.substack.com/p/ai-and-the-end-to-all-things
With disappearing moats, regulation battles might become more intense as a last attempt to grasp at anything that can save the sinking ship.
If AI lives up to its expectations, then I would expect moats to continually be harder to build. AI is the machine to destroy moats, as at its core it is essentially a skill/technology replication machine. As long as it can actually accomplish that end, there will unlikely be any moats that can survive.
I described this as the "AI Clone Wars", "Anything you create can be replicated without investment cost while also being unique in design as well as delivering the same function or experience. Intellectual property laws essentially have no function in this new environment and there isn't an obvious remedy" - https://dakara.substack.com/p/ai-and-the-end-to-all-things