Comment by Fiveplus
100%. It feels like Apple is perfectly happy letting the AI labs fight a race to the bottom on pricing while they keep the high-margin user relationship.
I'm curious if this officially turns the foundation model providers into the new "dumb pipes" of the tech stack?
It’ll be interesting to see how it plays out. The question is, what’s the moat? If all they have is scaling to drive better model performance, then the winner is just whoever has the lowest cost of capital.