AI is in the very early stage of an industry where competition is intense, therefore, profits are harder to come by. Eventually, AI will be immensely profitable. Calling LLMs useless is just as nuts.
> The moat is in data, training algorithms, compute capacity, and UX.
That’s a very shallow moat, then. I mentioned DeepSeek because everyone insisted the American giants had huge leads over the rest of the world until the day they got a big reminder that three of the things you mentioned are commodities and UX isn’t a moat.
There used to be a ton of chip manufacturers. Now there's only one dominant player left: TSMC. Eventually, the winner outpaces everyone and the cost to compete is so astronomically high, only 1-2 will be left.
Not everyone can give away their models for free forever - especially when the cost to train a new model is exponentially more expensive.
