Key insights
- The post argues that AI models from OpenAI, Claude, and Gemini offer similar outputs, lack brand loyalty, and their revenue model, heavily reliant on hardware purchases from companies like Nvidia, MU, and SNDK, is unsustainable. This casts a bearish shadow on the long-term profitability and valuation of AI-related tech stocks, suggesting a potential correction as the initial hardware boom fades.
https://www.reddit.com/r/singularity/s/wsmV3OqjlW
i've read this post and I also have subs from openAI, Claude & Gemini and I also have this experience
- the answer each one gives almost identical. Claude / Gemini will give you a wall of text but the basic idea is the same acorss the 3 subs
- Claude has an edge over coding / design but chatgpt now has an edge of image generation. Gemini owns that edge few months ago.
- The problem is those AI dont have any brand loyalty. They can force users to use them in their vertical integration stack but that's all about it. They spend hundred billion of dollars on a technical stack that dont build moat / brand loyalty / barrier to entry and that's a very big problem.
- What is the main revenue stream of Nvidia / MU / SNDK ? Those AI companies pay the hardware companies. But that revenue stream is unsustainable. It is not oil and gas that people have to use it no matter what.