He's not talking about that -- he's talking about open source software sales model used by companies like Redhat and HashiCorp. The threat here is that you're developing in the open, trying to up-sell enterprise features, professional services, and support. Then you have XYZ startup appear, they take your open-source code, repackages it and then sells enterprise features, professional services, and support. They basically leech off your OSS code and community, provide nothing back, and actively compete with you. It's brutal.