Anthropic at least seems to be doing well with enterprises. OpenAI doesnt have that level of trust with enterprise use cases, and commodization is a bigger issue with consumers, when they can just switch to another tool easily
Yeah, Anthropic is inarguably in a better position, but I don’t see how they justify their fundraising unless they find some entrenched position that is difficult for competitors to replicate.
Enterprise switching costs aren’t 0, but they’re much less than most other categories, especially as models mature and become more fungible.
The best moat I can think of is a patentable technique that facilitates a huge leap that Anthropic can defend, but even then, Chinese companies could easily ignore those patents. And I don’t even know if AI companies could stick to those guns as their training is essentially theft of huge portions of copyrighted material.
> Yeah, Anthropic is inarguably in a better position
OpenAI's biggest problem as well as their biggest advantage is that they have way, way more users than anyone else. Unfortunately for them the users they have dont pay for shit and they dont serve ads so more users = more money wasted right now. But its unlikely that will always be the case. If OpenAI turns on ads, most users will not leave because retail users hate change, and suddenly their massive user base is a boon instead of a problem.
SirensOfTitan|9 days ago
Enterprise switching costs aren’t 0, but they’re much less than most other categories, especially as models mature and become more fungible.
The best moat I can think of is a patentable technique that facilitates a huge leap that Anthropic can defend, but even then, Chinese companies could easily ignore those patents. And I don’t even know if AI companies could stick to those guns as their training is essentially theft of huge portions of copyrighted material.
HDThoreaun|8 days ago
OpenAI's biggest problem as well as their biggest advantage is that they have way, way more users than anyone else. Unfortunately for them the users they have dont pay for shit and they dont serve ads so more users = more money wasted right now. But its unlikely that will always be the case. If OpenAI turns on ads, most users will not leave because retail users hate change, and suddenly their massive user base is a boon instead of a problem.