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Why things will eventually fall apart: 1. Everybody, even Google, seems to be treating AI as if it ...
By @GaryMarcus
80 score
AI Analysis
Gary Marcus lays out a five-point thesis that AI will eventually fall apart financially because everyone builds the same commodity tech with no moat, preventing monopoly pricing and forcing price wars that make returns modest relative to spending.
Why things will eventually fall apart:
1. Everybody, even Google, seems to be treating AI as if it were some kind of winner take all competition like web search was, in which Google taking over 95%
2. But everybody is building essentially the same technical solution with essentially the same data, so there is no moat.
3. If there is no moat, nobody is going to take 90% of the market.
4. With no clear winners, nobody can charge monopoly prices; instead, you get price wars and commodity prici
AI economicsno moatinvestment bubblecompetition
Source details
Why things will eventually fall apart:
1. Everybody, even Google, seems to be treating AI as if it were some kind of winner take all competition like web search was, in which Google taking over 95%
2. But everybody is building essentially the same technical solution with essentially the same data, so there is no moat.
3. If there is no moat, nobody is going to take 90% of the market.
4. With no clear winners, nobody can charge monopoly prices; instead, you get price wars and commodity prici
AI economicsno moatinvestment bubblecompetition