How are model companies creating better products than software companies
How are model companies creating better products than software companies
Description
AI model companies are leveraging distribution to outperform software competitors in product development
Transcript
That's what I'm saying. I think there's a there's in all of the and coding is the first one that really reached escape breakout velocity, so let's use that one as an example, but in anyone, I think you'll see a similar pattern and curve, exactly. I think you'll see a similar pattern and curve where you have a newer, more nimble player who is focusing on this, so they're focusing on, you know, coding or design and they're taking off, but they're taking off using, you know, an OpenAI or Anthropic model. OpenAI and Anthropic will see the trajectory of what they're doing and they will pour some funding into branding a product that is a direct competitor, and they'll take the share, bro. But why do they like why why would they be better at it than someone who does it already? 'Cause they it it it will be a situation where they limit the models that you can use. So, I'm a design, Figma, for example, I say, I'm not going to give my best model anymore. I've trained on your products. I'll make a product with a better model. But they you still you're able to use the model as well, so like how come they're able to still steal the show? They're not I yeah, and it's it's distribution. I don't think they need to be drastically better, but if it's better integrated with the other stuff that you already have, you get lock-in. And so you just use it, right? What's the point of paying for something else as well when it's there? It's the distribution.

