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> ChatGPT Plus has no real moat, little product differentiation (outside of its advanced voice mode, which Meta is already working on a competitor to), and increasing commoditization from other models, open source platforms, and even on-device models (like on Copilot+-powered PCs).

This is the only thing that matters imo and the biggest open question to me. All the math surrounding this is irrelevant if being the premier genAI API/service is something you can charge good money for (to businesses who likely won't scrimp). Winning that market share battle is worth burning billions for most likely and they are ahead of everyone else.



Businesses are interested in AI so they can fire employees and do the same amount of work with much cheaper AI instead. The whole point is to scrimp.


There's a wide range of economically attractive cost saving options potentially, that involve replacing employees/contractors with cheaper/fewer Gen AI augmented employees. Perhaps another way to make my point is that in the B2B space you win not just on price, but on reputation also if not primarily (as the people making the decisions are not spending their own money and make decisions primarily to avoid being fired). The competition to OpenAI needs to not just be cheaper to take their business.


Their moat is the data and feedback they get from their users. Each chat has the potential to learn something from. AB tests. Upvotes & Downvotes.

All that feedback has made their product better and they're at a very different scale than everyone else.




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