Model-layer duopoly by OpenAI and Anthropic would hurt everyone else, says investor
GavinSBaker · x · 2026-10-14
Investor Gavin Baker argues an OpenAI-Anthropic oligopoly at the model layer would be negative for nearly every company: they'd become a monopsony for hyperscalers, neoclouds, and datacenter semiconductors, with immense buying power that would eventually lead to vertical integration, while crushing the application layer. He contends model-layer fragmentation and competition benefits both AI infrastructure and applications, noting the layer has grown far more competitive in just four months via Grok, Muse, and especially open-weight models — whose inference clouds are growing faster than people expect.
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