LLMs Are Not a Moat; Vendors Pivot to App Ecosystems

sull · x · 2026-07-17

The author points out that with the rise of local and open-source models, the LLM itself is no longer a core moat for the future. Consequently, AI companies like Anthropic are actively driving cross-industry products and integrations, attempting to replace or partner with traditional cloud SaaS providers to build new ecosystem barriers.

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