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Why doesn't OpenAI have a lasting model moat with ChatGPT?

LLM MoatsStartups

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

OpenAI’s technical advantage disappeared faster than most expected.

OpenAI’s model moat expired quickly after ChatGPT launched. We saw BARD, LLaMA, FLAN UL2, BLOOM, and then Stanford’s Alpaca, a variant of Meta’s LLaMA cross-trained by OpenAI’s GPT-3.5. Everyone is now fine-tuning and cross-training models based on other models. A model moat does not exist for OpenAI. This is not surprising, such a moat also did not exist in previous Machine Learning waves. The only argument is that LLMs are expensive to train, so there’s a barrier to entry, not a model moat.

What Is The Competitive Advantage Of LLMs Like ChatGPT For Your Business? Three Takeaways. · Forbes


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