I think your response might be sarcasm, but actually this very situation demonstrates the truth of the adage.
In this case, competition and information-sharing is driving intelligence to become a commodity, with ever shrinking margins above compute+hardware. If this is the case, the incumbents can't recoup the many billions they have borrowed.
Cornering a market makes a winner, a winner who can charge large margins on a product you don't have an alternative to.
However, the point you might be thinking of is "competition is good for consumers" which is true. Thiel's sentiment was "competition makes companies into losers", as they become low-margin commodity factories, which is also true.
In this case, competition and information-sharing is driving intelligence to become a commodity, with ever shrinking margins above compute+hardware. If this is the case, the incumbents can't recoup the many billions they have borrowed.
Cornering a market makes a winner, a winner who can charge large margins on a product you don't have an alternative to.
However, the point you might be thinking of is "competition is good for consumers" which is true. Thiel's sentiment was "competition makes companies into losers", as they become low-margin commodity factories, which is also true.