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100%. It feels like Apple is perfectly happy letting the AI labs fight a race to the bottom on pricing while they keep the high-margin user relationship.

I'm curious if this officially turns the foundation model providers into the new "dumb pipes" of the tech stack?

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It’ll be interesting to see how it plays out. The question is, what’s the moat? If all they have is scaling to drive better model performance, then the winner is just whoever has the lowest cost of capital.

This isn’t a mystery - it’s Google

Yea, I think that’s probably right, unless something unexpected changes the game.

Google seems to thrive on commodity products. Search, EMail, etc.

It is their strength to take commodity products and scale it well.

As if they really have a choice though. Competing would be a billion dollar Apple Maps scenario.

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