In his essay How will OpenAI compete?, Benedict Evans argues that OpenAI lacks a durable competitive advantage because its models are being matched by incumbents with superior distribution and its user engagement remains shallow. He questions OpenAI's strategy of massive infrastructure investment, noting that high capital expenditure alone does not create the winner-takes-all network effects seen in previous tech cycles. Ultimately, Evans suggests that OpenAI's success depends on whether it can transform from a "thin wrapper" chatbot into a true platform that captures value from new, yet-to-be-invented AI experiences.
TLDR:
In his essay How will OpenAI compete?, Benedict Evans argues that OpenAI lacks a durable competitive advantage because its models are being matched by incumbents with superior distribution and its user engagement remains shallow. He questions OpenAI's strategy of massive infrastructure investment, noting that high capital expenditure alone does not create the winner-takes-all network effects seen in previous tech cycles. Ultimately, Evans suggests that OpenAI's success depends on whether it can transform from a "thin wrapper" chatbot into a true platform that captures value from new, yet-to-be-invented AI experiences.