> AI text generation competitors like Cohere and Anthropic will never be able to compete with Microsoft/Google/Amazon on marginal cost.
Anthropic already does, with its models. They are same price or cheaper than OpenAI, with comparable quality.
> Having enough scale to perpetually offer free/low-cost compute is a moat.
Rather than a moat it is a growth strategy. At one point in time you need to start to monetize and this is the moment when rubber hits the road. If you can survive monetization and continue to grow, now you have a moat.
Anthropic already does, with its models. They are same price or cheaper than OpenAI, with comparable quality.
> Having enough scale to perpetually offer free/low-cost compute is a moat.
Rather than a moat it is a growth strategy. At one point in time you need to start to monetize and this is the moment when rubber hits the road. If you can survive monetization and continue to grow, now you have a moat.