[danielmarkbruce]

It's high, really high. But, that isn't bad. In fact... they are better of with it being extremely high. Then scale matters. They need enough revenue at high enough margins to earn a decent return on that spend, but higher is, from a competitive perspective, better.

[cloudbonsai]

I understand your logic ("the high CapEx is the moat"), but on the other hand, isn't it be a bit like multiple high speed railway systems trying to connect San Francisco to Los Angeles?

And there are three internal players chasing the same goal at the moment (OpenAI, Anthropic and Google), and two others (Deepseek and Alibaba/Qwen). What will prevent them from cutting the price floor each other?

Looking from a different angle: Microsoft has been able to maintain its monopoly because it was/is a huge pain for companies to switch the operating system, but do LLMs have that stickiness?

[danielmarkbruce]

No. But stickiness isn't the only way to build a moat. Scale is a way too.

[cloudbonsai]

All right. Thank you.