Claim◆Article · 13 words
OpenAI is winning users away from Anthropic specifically because of the uncertainty surrounding Fable's access and availability.
Author · Simon Willison's Weblog
Claim◆Article
A market with only 2-3 dominant frontier labs earning 90% inference margins is bad for every other part of the AI stack, while anything that lowers those margins and increases model-layer competition benefits power, semiconductors, hyperscalers, neoclouds, and software.
Investor Gavin Baker argues that a highly concentrated frontier-model market with fat margins is net negative for the rest of the AI ecosystem, and that more model-layer competition benefits everyone else in the stack. ✦ AI generated
Gavin Baker · Big Technology · 2026-07-17 · original ↗
A world where there are only 2-3 dominant frontier labs with 90% inference margins is net negative for every other layer while being awesome for those 2-3 labs. Anything that lowers margins and increases competition at the model layer is good for every other AI layer: power, semiconductors, hyperscalers, neoclouds and yes even software.
Read full article ↗excerpt · fair-use quotation
- ·2-3 dominant labs command ~90% inference margins
- ·This concentration is net negative for every other layer
- ·Only great for those 2-3 labs, not the ecosystem
- ·Lower margins at model layer benefit power, semiconductors
- ·Also benefits hyperscalers, neoclouds, and software
- ·Competition redistributes value across the AI stack
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