Open-source alternatives and falling costs eliminate model-based protection
Google’s statement that neither company has a moat reflects how the market is flooded with new algorithms regularly, with open-source versions offering viable alternatives. Meta open-sourcing LLaMA essentially finalized this setup. With training costs decreasing and the pivotal role of application use cases, investing in Large Language Models is challenging to safeguard. There’s no inherent protection from just having trained models. The lack of a moat means competitors can easily enter with similar technology, especially as open-source options proliferate and costs continue declining.
— OpenAI Isn’t Going Bankrupt, But It Has A Business Model Problem · Forbes