News Summary

• In the business world, a moat is a quality of a business that makes it difficult for competitors to take that company’s profits.
• Anthropic, Open AI, and other LLM companies would have huge moats given the amount of compute it takes to build models.
• But open source models are quickly draining that moat, and now the only thing standing in the way of a customer using one of these models on their own hardware instead one from the larger companies is physical computing resources.