Source: Tomasz Tunguz
If foundation models are no longer differentiated products, the economic logic of AI shifts from model development to applications and infrastructure—the same pattern that crushed airline margins while enriching Boeing and fuel suppliers. This explains why OpenAI, Anthropic, and others are now racing to build agent frameworks and enterprise integrations rather than incrementally improving base model benchmarks, and why cloud providers suddenly have leverage over labs that seemed invulnerable months ago.