this post was submitted on 28 Dec 2024
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Last year's leaked "We Have No Moat, And Neither Does OpenAI" memo from inside Google continues to age like fine wine. The big industry leaders spend umpteen billions of dollars forcing their way up to the top of the leaderboards and then just a few weeks or months later some little upstart is nipping at their heels with competition that cost only millions to build. I love it.
The moat is probably mostly inertia. Microsoft or whoever will offer a code assistant that directs to OpenAI's model, and users will just use that. Most software moats are like that, rather than being based on intrinsic technological superiority.