Schmidhuber: DeepSeek Proves Tech Giants Have No AI Moat

SchmidhuberAI · x · 2026-08-01

AI pioneer Jürgen Schmidhuber reshared his thoughts from January. He noted that as tech giants invest in infrastructure like nuclear energy to run AI data centers, once nimble and highly profitable software companies are becoming like traditional utilities.

He emphasized that Open Source and DeepSeek's breakthrough (which he called the "Sputnik moment") have once again shown that such companies "have no moat" in the AI field. He drew an analogy between early exclusive car satellite phones and today's ubiquitous cheap smartphones, implying that AI technology will eventually become highly democratized and low-cost.

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