> What we're trying to find is a business that, for one reason or another -- it can be because it's the low-cost producer in some area, it can be because it has a natural franchise because of surface capabilities, it could be because of its position in the consumers' mind, it can be because of a technological advantage, or any kind of reason at all, that it has this moat around it.
He didn't seem to have specific definition at all really.
I think most people attribute it to a "secret sauce technology" in the case of OpenAI, I'm not sure if "finances to lease a huge cluster of GPUs" makes sense here because the main competitors (Google, AWS, Apple, etc) also have access to insane compute as well yet have struggled to get close to GPT4's performance in practice.
That said I do agree that it's a moat for the startups like stability/mistral, etc. They also have access to $/compute, albiet a lot less. And you can see this in their research, as they've been focused on methods to lower the training/inference costs.
He didn't seem to have specific definition at all really.
I think most people attribute it to a "secret sauce technology" in the case of OpenAI, I'm not sure if "finances to lease a huge cluster of GPUs" makes sense here because the main competitors (Google, AWS, Apple, etc) also have access to insane compute as well yet have struggled to get close to GPT4's performance in practice.
That said I do agree that it's a moat for the startups like stability/mistral, etc. They also have access to $/compute, albiet a lot less. And you can see this in their research, as they've been focused on methods to lower the training/inference costs.