The fact that dozens of companies seem to have been able to produce great models, and the mid-tier ones are only months behind the frontier models tells me that just having a great model is not much of a moat. It may actually be having the physical stuff that makes all of this possible is the bigger revenue generator.

You can be both but you probably are not very good AI company if you have significant amount of extra computing to rent. Or you calculated your own demand significantly wrong somewhere. Which again does not make you great AI company...

> They are either datacenter company or an AI company - but it cannot be both.

why not?

Arguably Google is both (with GCP and Gemini).

SpaceX is an ISP with a sideline in rocket launches, and xAI is a neocloud with delusions of grandeur.