AI BriefingBuilding a Moat Requires a Model
Key point
It is difficult to secure a competitive advantage with just a service layer built on APIs alone; proprietary model capability is essential.
Details
Over the past two years, most companies have treated models as a simple Commodity Input. They have built products by selecting a frontier API and layering an intelligent interface on top of it.
However, simply wrapping a model in this way makes it difficult to build a sustainable Moat (economic moat). We are moving into an era where the model itself becomes the product's core competitive advantage.
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