alt Hacker NewsGoogle will definitely lose. Llms supplants search. But not the old document search which they stopped doing long ago.
Add in the fact that open weight models are 6-12 months behind frontier models means AI companies aren’t building a moat, they’re on a treadmill. And treadmills don’t justify the valuations OR the hype.
AI companies are in trouble.
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Not all AI companies are the same.
Some are piling on masses of debt to built capacity (eg. Oracle). Others are just reinvesting the profits from the rest of their company (eg. Google, Meta).
Anthropic’s moat is their best tool, Claude Code.
OpenAI’s moat is the brand of ChatGPT, once the fastest growing app in the history of the world.
It’s possible that open weight models keep pace, but it’s also possible that the investment to train them becomes prohibitively expensive and open weight models cease to keep pace with the large foundation model companies.
One of the double edge swords I see is devs/evangelists pushing agentic coding are playing the 'good enough' statement. If that is true and those asking for software can live with good enough AI code, the moment the free local models hit that level the party is over in the continual push to the premium tip of the spear models.
I see one profitable enterprise for AI that involves spying on everyone, managing their lives (or otherwise) tightly, automating foreign conquests and needing to make only the top decisions while delegating everything else, like a king. I can see a group or one could say a class of people that would happily invest in such future.