In practice this doesn't work though, the Mastercard-Visa duopoly is an example, two competing forces doesn't create aggressive enough competition to benefit the consumer. The only hope we have is the Chinese models, but it will always be too expensive to run the full models for yourself.
New companies can enter this space. Google’s competing, though behind. Maybe Microsoft, Meta, Amazon, or Apple will come out with top notch models at some point.
There is no real barrier to a customer of Anthropic adopting a competing model in the future. All it takes is a big tech company deciding it’s worth it to train one.
On the other hand, Visa/Mastercard have a lot of lock-in due to consumers only wanting to get a card that’s accepted everywhere, and merchants not bothering to support a new type of card that no consumer has. There’s a major chicken and egg problem to overcome there.
> In practice this doesn't work though, the Mastercard-Visa duopoly is an example,
MC/Visa duopoly is an example of lock-in via network effects. Not sure that that applies to a product that isn't affected by how many other people are running it.
Chinese competition can always be banned. Example: Chinese electric car competition
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