> Withholding your best models doesn't work unless you have no competition.

It could also work if you DO have competition but your compute capacity is overbooked anyway, so releasing the better model doesn't actually make you that much more money (except for raising prices for the same amount of compute, which would give limited gains).

This is pretty much the situation Anthropic is in today.

That just means that Anthropic is fucked unless they get more capacity.