[boh]

AI is destroying the economic premise that has drawn so much investment into Silicon Valley. It's going from a capital light business model with network driven moats that allow market domination, to a capital heavy, high burn-rate model with the potential to not only offer ZERO moat protection but destroy the ones that already exist. Cloud infrastructure + vibe coding now make it possible to quickly replace existing apps with custom fit alternatives. Open source+cheap Chinese LLMs may not be as good as Opus but maybe good enough turns out to be good enough ( Sun Microsystems Vs. Linux is a good example). Currently AI has just as much potential destroying Silicon Valley as it does building it up.

[jimbokun]

The open weight LLMs seem a prime candidate for Innovator's Dilemma style disruption.

[pixl97]

That sounds like Silicon Valley's fault for taking the actual silicon out of the valley.

Sounds like it's best to be the shovel manufacturer now.