Google and Facebook didn’t have a moat (Remember MySpace? They had network effects too), but they were first in creating a culture where they approached data capture and utilisation as part of their DNA. AI startups might be very well suited to capture initial market share but can always be turned to features by Microsoft or Google as the incumbents are just smarter and faster this time around. I can potentially see AI startups disrupting product categories as they be can take more PR risk (uncensored models for instance). But if they get too big they’ll be turned into features at any given time. I think it’s just more brutal of a market in 2023 than it was back in 2003.
zombiwoof|2 years ago