There’s 2 arguments.

1. He’s talking about training new models and at one point, having data was valuable. Now synthetic data is being used to train models

2. Companies like SalesForce who’s moat is having all your customer data so you’ll be locked in. You could extract it but you’d have to clean it and then change it to your new schema. With LLMs, you can do that in minutes and even use SalesForces MCP or API to get all your data and leave.

It’s exactly why companies like Figma are gate keeping their MCP. They know that swapping their MCP with Paper’s or any new one is easy.

The moats are evaporating as we speak. Distribution is one of the smaller ones left, but the personal software trend might eat that too.