The upshot for the industry at large, is: the LLM-as-Moat model has begun to disappear, and may be gone even by the end of this year. “We have no moat, and neither does OpenAI” was an adieu to the LLM moat at the center of a SaaS ecosystem. AI is being commoditized practically overnight.

It’s sort of like the decades-long gradual miniaturization of computers from mainframes to embedded chips that run full OSes. Except it happened in ten weeks.

If you’re relying on LLMs for your moat, well… I hope you also have a data moat. You’re going to need it.

We’re Gonna Need a Bigger Moat
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