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The nature of software that has not moat built into it. Which is fantastic for the world, as long as some companies are willing to pay the premium involved in paving the way. But man, what a daunting prospect for developers and investors.
I'm not sure we should call it "fantastic"

The negative downsides begin at "dystopia worse than 1984 ever imagined" and get worse from there

That dystopia is far more likely in a world where the moat is so large that a single company can control all the llms.
That dystopia will come from an autocratic one party government with deeply entrenched interests in the tech oligarchy, not from really slick AI models.
The way it is going, we are all going be busy with WW3 soon so we won’t have much time to worry about that.
The most is there I think: capital to train models and buy good data, and then pull strings to make it into everyone's computer.

It's indeed very dystopia.