alt Hacker News> AI model providers have zero "moat", clients change them as they see fit.
That might be true in tech-savvy industries -- but in non-tech industries where the biggest software purchase might be the office suite or the ERP, inertia means the GSuite shops stick with Gemini, and the Exchange/Office 365 shops stick with Copilot.
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At least from some smaller marketing companies I know that isn't necessarily true. They often have Gemini or Copilot and Claude nowadays and before Claude it was ChatGPT.
The moat is way smaller than with Office or Gsuite because they feed data into the chat interface and it gives them an answer. The moat for Gsuite and Office is higher because you have to move all your data and reorganize it. Oh and everyone has to learn how to use the new software clients.
Copilot isn’t a model per se, no? It’s a harness that can use any model that supports tool calls from what I understand. It’s the way Microsoft commoditize ai models
There is a time window when it will flip. When Internet came along, we had a number of businesses that did not survive over the next years.
This time, it is different with AI. The rate of change is significant.
I think you don't understand moat - that's not a moat.
I tend to agree with this sentiment. I'm not in the tech sector. As an outsider, it seems to me that OpenAI and Anthropic are chasing government and the defense industry as their main clients. Google and Microsoft are chasing business clients and educational institutions. Amazon and Apple are chasing consumers.