Nice overview. The challenge ahead for “AI” companies is that it appears there’s really no technical moat here. Someone comes out with something amazing and new and within months (if not weeks or days) it’s quickly copied. That environment where everything quickly becomes a commodity is a recipe for many/most companies in this space to quickly get washed out as it becomes economically unviable to play in such an environment.
The money is still flowing, for now, to subsidize that fiasco but as soon as that starts to slow, even just a bit, things are gonna get bumpy real quick. Super excited about this tech but there are dark storm clouds building on the horizon and absent a major “moat” breakthrough it’s gonna get rough soon.
Not necessarily. The playbook of what tends to happen is first a bunch of players go bust in the race to the bottom, then the survivors are free to raise prices a bit when others realize there’s not much point in entering a race to the bottom. Those left then let quality slip as competition cools.
That’s exactly what happened with rideshare companies. It was an amazing new thing but subsidized in an unsustainable way, then a bunch of companies exited the space when it was an commoditized race to the bottom and those left let quality slip. Now when you order an Uber a car shows up that smells bad and has wheels about to fall off. The consumer experience was a lot better when Uber was a VC subsidized bonanza
The money is still flowing, for now, to subsidize that fiasco but as soon as that starts to slow, even just a bit, things are gonna get bumpy real quick. Super excited about this tech but there are dark storm clouds building on the horizon and absent a major “moat” breakthrough it’s gonna get rough soon.