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The counter argument is that they won't be able to sustain those gross margins when the market matures because they don't have an effective moat.

In this world, R&D costs and gross margin/revenue are inextricably correlated.



When the market matures, there will be fewer competitors so they won’t need to sustain the level of investment.

The market always consolidates when it matures. Every time. The market always consolidates into 2-3 big players. Often a duopoly. OpenAI is trying to be one of the two or three companies left standing.




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