The first is Google's vertically integrated chip pipeline and deep supply chain and operational knowledge when it comes to creating AI chips and putting them into production. They have a massive cost advantage at every step. This translates into more free services, cheaper paid services, more capabilities due to more affordable compute, and far more growth.
Second problem is data starvation and the unfair advantage that social media has when it comes to a source of continually refreshed knowledge. Now that the foundational model providers have churned through the common crawl and are competing to consume things like video and whatever is left, new data is becoming increasingly valuable as a differentiator, and more importantly, as a provider of sustained value for years to come.
SamA has signaled both of these problems when he made noises about building a fab a while back and is more recently making noises about launching a social media platform off OpenAI. The smart money among his investors know these issues to be fundamental in deciding if OAI will succeed or not, and are asking the hard questions.
If the only answer for both is "we'll build it from scratch", OpenAI is in very big trouble. And it seems that that is the best answer that SamA can come up with. I continue to believe that OpenAI will be the Netscape of the AI revolution.
The win is Google's for the taking, if they can get out of their own way.