Why do we need Nissan? Three car companies are plenty.

That’s how physical good work. But software, especially consumer software, works on a winner take all model. That’s why there are very few consumer companies and chatGPT is pretty much the only one after Meta, which was founded in 2004. The reason this happens is because consumer software can scale infinitely as there is zero marginal cost for a new user and there are very high switching costs. A single car company cannot scale to serve every single customer. Because it requires massive CapEx investment. But Google can serve every single search globally because the incremental cost to serve the additional consumer is essentially zero. That’s how these frontier models are eventually going to play out. There will be consolidation and winner take all. It has somewhat happened already with chatGPT taking over consumer and Claude taking over Enterprise. There will probably some long tail open source player, similar to Linux.

Nissan would agree!

https://www.autoblog.com/news/nissan-reports-fifth-straight-...

This might be the biggest Grok burn in the comments.