Chinese Open Models Won't Kill US AI Labs: Moat in Apps and Profitability Outlook
Atlan_ · reddit · 2026-08-14
The author argues that price pressure from Chinese open models won't bankrupt OpenAI and Anthropic. While API business faces price competition, the application layer (e.g., Claude app) is far ahead. The moat in apps is deep, and subscription profitability is promising: even in worst-case calculations, through shrinkflation and declining model costs, subscription value could yield 20% margins in a year.
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