As AI competition heats up a question every AI provider and investor is thinking about is what exactly is your moat? Warren Buffet frequently refers to economic moat, which in a nutshell is your company’s competitive advantage – for example, Coca Cola’s distribution network and customer loyalty helps create a barrier (moat) against competitors.
“Grok has spent a lot of money to be yet another company on the leaderboards for a commodity technology with no defensibility that we know of. Are they making it look easy because they’re brilliant, or because this is mostly a commodity and the only moat is capital and access to GPUs?” – Benedict Evans
A company whose moat is mostly consisting of access to capital is highly vulnerable to competition.
Vik Bulletin 