[robotresearcher]

> How are ~1B active users not "moat"?

When they cost more to serve than they bring in, customer switching cost is vanishingly low, your competitor has revenue from other things and you don't.

[beernet]

> When they cost more to serve than they bring in, customer switching cost is vanishingly low, your competitor has revenue from other things and you don't.

What? "Other things"? This is really vague. Who says competitors have lower CAC? It's rather likely competitors pay more for a new customer, due to, very simply, brand.

[robotresearcher]

Google is the competitor I had in mind.

They aren’t going to run out of money. They have existing customer relationships. They invented the model architecture of which GPT is a variant. Their existing enormous business is their own AI customer.

OpenAI’s business seems way more precarious than Google. Users get the tech either way.