alt Hacker NewsI mean, a lot of people before them were "not in the model business" (Cursor et al) and it seems they got disintermediated by the model companies. Step 1 is still to have the best model, or hope for model progress to taper out.
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jacquesm • today at 2:41 PM
> or hope for model progress to taper out
No, that would kill them for sure. Or did you mean 'open model progress'?
Vertical integration is hugely valuable, but revenue comes from the top of the stack, not the bottom.
Apple makes great margins on hardware. They are 100% not in the CNC milling business. But their investments at that low level and vertical integration allow for higher margins at the top.
Cursor had... nothing. A minor, indefensible value add to a much larger and wealthier supplier.