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How could regulation help OpenAI create a competitive moat?

Policy & EthicsLLM MoatsInvestment

Drawn from Lutz Finger's Forbes column, LinkedIn writing, and Cornell teaching. Sources are cited inline so you can read the originals.

Advocacy for oversight and NoAI tags could limit new competitors.

Regulation can create a moat. Sam Altman has been on tour with policymakers advocating for more oversight and control. Additionally, OpenAI now allows blocking their scraping mechanism with a NoAI tag. Both efforts would create a moat in two ways: First, regulators would allow OpenAI as a tool but be more restrictive to newcomers. Second, newcomers could no longer scrape data with a NoAI tag. This is one of five strategies in OpenAI’s playbook to secure its investments.

How OpenAI Can Secure Its Investments - A Playbook That Needs Microsoft · Forbes


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