6/9/2026 at 10:51:19 PM
The moat looks deep today but it's going to become more shallow every year.Training a new model from scratch takes serious resources. Post-training/fine-tuning an existing model, dramatically less. The knowledge for the process was esoteric two years ago, now you can ask a current model (one of several) to walk you through it, while building the tools to do it as you go. Several of my recent weekend projects have been exactly that sort of thing, just so I understand it better. "Let's make a LoRA", "let's generate a corpus of training data for fine-tuning a model for X task", "how can I put my face in a text-to-image model?" stuff like that. All of this is do-able on kinda modest local hardware (a couple of old GPUs or a Strix Halo or DGX Spark or big Mac Studio), or for a few bucks or a few hundred bucks or a few thousand bucks of cloud compute, depending on scale.
Scale that up to corporate or startup scale, with the money that's been flowing into AI for the past couple/few years, and it's obviously there's going to be a lot of competition just as the top model makers need to start ringing the cash register. That's a lot of opportunities for people to look at their ballooning Claude usage costs and find other ways to do the same thing for drastically less money. $100/month or $200/month is a no-brainer for Claude Code with probably the best model for coding, but they're pushing more users to usage-based billing which becomes cost-prohibitive real fast.
So, they desperately need to continue to be among the only ways to solve the hardest problems, and they need the alternatives to cost a similar amount. They can count on OpenAI and Google to ratchet up prices, too. They probably can't count on everybody, especially the vendors in China with different economics, to do it. And, they can't count on companies to look at their own usage and not ask, "Can we train a smaller specialist model that does this one thing we're using the Anthropic API most heavily for?"
I'm hoping they just mean stuff like using Claude for distillation by e.g. Chinese model makers, and not "how do I fine-tune Gemma 4 to write more like me?" or whatever.
by SwellJoe
6/9/2026 at 10:57:05 PM
What moat? There are multiple companies providing pareto-optimal frontier models, and it takes O(10) people to build one of these things.The rest is capital intensive, and the price will approach the cost of production over time.
Thinking this is a profitable endeavor is equivalent to claiming coal plants have good margins because boilers are expensive.
by hedora
6/9/2026 at 11:19:02 PM
I think we agree?What moat? You answered yourself: "capital intensive"
But, history says the supercomputer of today will fit in your pocket in a few years.
They've bought up all the RAM and GPUs, which pushes the capital requirements upward for everyone else. But, they can't corner the market forever, there are too many competing interests. AMD and Intel keep making new GPUs and APUs. The memory makers can't just sell to only AI companies forever, if they do Chinese manufacturers will move in and eventually eat them from below (as has happened many times before).
They have a moat today, and it's just that it's really expensive to train and host frontier models, especially at commercial scale. It used to be there was also some secret sauce to making it fast and efficient. But, secret sauce is being published daily by all sorts of researchers, folks are figuring out how to do more with less and it often finds its way into llama.cpp or vLLM or SGLang within days or weeks.
by SwellJoe
6/10/2026 at 12:04:25 AM
> But, history says the supercomputer of today will fit in your pocket in a few years.I don't think this will be true in the same time span anymore. Each miniaturization is costing more and more money.
Perhaps they'll come up with exotic fundamental improvements, but I don't think the rate of improvement of compute/watt will match the previous decades.
by theLiminator
6/10/2026 at 12:16:10 AM
Yeah, that's probably true, but we're also seeing that there's still tons of inefficiencies in how LLMs are being run. Seems like every couple months there's some new technique to squeeze more performance out of less hardware. KV caching improvements, fast attention, speculative decoding, dynamic quantization, quantization aware training, etc.That said, I recently replaced my five year old self-built PC (with a top-of-the-line desktop CPU, chipset, memory, and GPU of the time) with a new everything-the-best build, and while it's clear we're not keeping up with Moore's Law anymore, it's still 4-5 times faster for compute-intensive stuff, especially parallelizable tasks. We're still getting faster/cheaper. So, the time scale is maybe ten years rather than five.
by SwellJoe
6/10/2026 at 12:37:11 AM
Really the biggest concerns are not computers getting spectacularly faster, but 'intelligence' algorithms getting orders of magnitude better.Drop the power requirements 1000 fold, and yea you will be able to make your own SOTA model on the cheap. The problem is the person that has a few exaflops of power will still leave you in the dust in the intelligence explosion that would happen after an event like this.
by pixl97
6/10/2026 at 3:59:35 AM
Depends upon the intelligence vs compute scaling law— which I think no one really knows. Pretty likely to be some degree of diminishing returns, but how much? Is it logarithmic, inverse quadratic, …If training models gets way cheaper, I would expect the diminishing returns to get steeper too.
by mlyle
6/10/2026 at 6:25:54 AM
>Pretty likely to be some degree of diminishing returnsintelligence may be different. If we look at biological brains - do we get diminishing returns or completely opposite scaling law when we compare our brain against say gorilla's ?
by trhway
6/10/2026 at 1:38:25 AM
Single clock speed hasn't had much of an upgrade, but the architecture for doing exactly what they are doing? That will improve for at least 5-10 years. There are both huge power gains from Processing in Memory (PIM) chips (70-80% discount in energy), and improvements to engineering to make memory cheaper and cheaper.by altcognito
6/10/2026 at 5:45:56 AM
Yes, I'm talking about a supercomputer from today in your pocket. That probably requires at least 5000x perf/watt if not even more.by theLiminator
6/10/2026 at 5:40:13 AM
>but I don't think the rate of improvement of compute/watt will match the previous decades.Unless we invest heavily in research and find new way to do chips. But I think there's not enough motivation and money to do that.
by DeathArrow
6/10/2026 at 9:00:31 AM
There's literally never been more money being thrown at that problem.by SwellJoe
6/10/2026 at 3:58:47 AM
> I think we agree?That is such a crazy way to start a response to someone trying to argue with you. I should try this. That's amazing. I know you didn't mean it as a trick, at least I'm pretty sure you meant it sincerely, but I'm just struck by the power of it to defuse and redirect the conversation. And this was a very low-grade example, but I could imagine this being useful in much more heated contexts.
by windowshopping
6/10/2026 at 8:10:05 AM
I think in general stripping away the parts you agree with from the argument works great, because it strips away a whole lot of potential for ending up indirectly arguing over things that aren't in contention, and it often also defuses the rest when it turns out the core of the argument perhaps is much smaller than people are willing to get invested in.by vidarh
6/10/2026 at 9:57:38 AM
How do you do that without sounding negative? Because by doing that there's the risk of the general impression "we didn't agree", as you basically focused on the disagreements.by soco
6/10/2026 at 6:57:26 AM
OTOH I have often witnessed people agreeing without realizing it. I‘ve been able to defuse a bunch of arguments by pointing that out.by user_of_the_wek
6/10/2026 at 4:24:41 AM
Yeah, more valuable than the comments I came to read (even if those are interesting too!)by CactusOnFire
6/10/2026 at 6:45:48 AM
Usually people are taught these techniques at the management courses. If you're at a BigCorp where they push managers through such courses - you can hear a lot of that stuff in your manager's speech if you pay attention to it.by trhway
6/10/2026 at 3:55:26 AM
They’ve bought up all the RAM and GPUs…Is there an endgame where even this is considered overly complex? Instead of starving the competition by buying up all the compute, why not just buy up… all the money!? Hoover up as much investment capital as possible so that your competitors can’t get funding.
by gorgoiler
6/10/2026 at 5:01:13 AM
I assume this is an honest question, in which case the answer is funding is not really finite.by airstrike
6/10/2026 at 4:33:40 AM
or just "buy" your competition like big tech didevery major tech company literally have deal,ownership,alliance etc
they literally not gonna gobble up entirely to trigger anti-trust case
by tonyhart7
6/10/2026 at 1:36:45 AM
The other half of the moat is the data they stole from everyone else, some of it illegally. So, be sure they will do everything in their power to stop others from getting that data freely.by altcognito
6/10/2026 at 2:45:16 AM
Yeah, I think a lot of the "slow down" rumblings we're hearing from OpenAI and Anthropic are really overtures toward regulatory capture; basically, "now that we're in the lead, we need to lock this shit down so nobody else can catch up."by SwellJoe
6/10/2026 at 4:54:26 AM
but.. OpenAI and Anthropic can't stop China and EU, can they?Depends on your world view, they might or might not come up with something better. but I guess we can agree nothing with stop them from _trying_?
by j16sdiz
6/10/2026 at 5:24:50 AM
US successfully enforce DMCA and other copyright stuff on EU while giving free pass to own bigtech now.China will certainly compete though.
by SXX
6/10/2026 at 5:38:29 AM
>But, history says the supercomputer of today will fit in your pocket in a few years.That was Moore's law saying that. And it seems Moore's law slowed down quite a bit for now.
by DeathArrow
6/10/2026 at 6:39:56 AM
Yes, but surely AI are going to save us from the bloated stack of modern software.by psychoslave
6/10/2026 at 4:30:41 AM
"But, history says the supercomputer of today will fit in your pocket in a few years."hmm nooo ??, physic says otherwise
by tonyhart7
6/10/2026 at 2:05:37 AM
O(10) people?by redox99
6/10/2026 at 2:35:38 AM
So, a constant number of people.(less facetiously, I think they mean "5 to 50")
by nvader
6/10/2026 at 2:28:46 AM
Other models arent even close except for gpt 5.5. You're dead wrong on that. You read too many benchmarks and/or chinese propaganda. There hasn't been a serious contender in agentic SWE besides OAI and anthropic for a long time, and no chinese model has even reached opus 4.5 performance yet. The moat isnt insurmountable but it is very solid for at least a 12 month lead time. Which is such an insane amount of time in this landscape and industry. The moat is stretching, not shrinking, on agentic SWE. And that is literally the only moat that matters for RSI.by jatora
6/10/2026 at 2:52:07 AM
DeepSeek 4 Pro is performing agentic SWE tasks for me quite well. It can't do everything Opus can do, but if OpenAI and Anthropic disappeared tomorrow, I'd figure out ways to make it work with harness improvements and other optimizations.Anthropic can stretch the moat all they want, but in the department of trust, they put a final nail in their coffin today. Anthropic is pure evil at this point.
by gck1
6/10/2026 at 3:39:08 AM
'evil' lol. Every single corporation you deal with is evil then. it's greed. and almost every large model provider is guilty of it. China is all open source right now. cool! gee i wonder what would happen if they ever actually achieved SOTA? They would clamp down on that so fast Dadio's dradel would spinby jatora
6/10/2026 at 4:49:06 AM
China isnt "all open source" they still keep their top models out of the public view. Its easy to "open source" models when they're so far behind very few will pay for them.Open source in quotes because they are not open source and not even close to open source.
by AuthAuth
6/10/2026 at 5:12:04 AM
Can't we stop using "open-source" when it is just freeware?by prmoustache
6/10/2026 at 5:28:03 AM
Open-weight is both meaningful and unique term.by SXX
6/10/2026 at 3:56:23 AM
> Every single corporation you deal with is evil then.I don't know. If my ISP started MITMing my traffic so that they could silently rewrite packets, and/or deleting files on my computer because they thought me sharing wireless AP with my SO was me trying to compete with them, I'd call them evil.
I believe they tried something similar to the first one a few years ago in the US, and I remember people called that evil to the point where tech giants shut down their websites in protest.
> gee i wonder what would happen if they ever actually achieved SOTA? They would clamp down on that so fast Dadio's dradel would spin
Cool. Let them "achieve SOTA" and close down the models. Let the pendulum swing the other way.
You seem to not understand what China's goal is here. They want the AI bubble to burst and take your 401ks with it. And OAI/ANTs decisions are driving you towards that cliff.
by gck1
6/10/2026 at 2:43:14 AM
I use gpt 5.5 at work (because they pay for it) and DeepSeek at home (because I pay for it) and while I do agree one is better than the other, I think you’re really overstating how far apart they are. Just my take.by ggoo
6/10/2026 at 8:48:45 AM
Honest question, is it possible that since might be using the latest/best model to analyze and improve the existing ones, the moat will expand exponentially, making the models better and more efficient at each iteration until there is no point in competing?by gitanovic
6/10/2026 at 6:13:44 AM
What's 12 months lead time worth? Not much from what I can tell. Contrary to what these AI companies might tell you, if an AI model can't do it, a human can still do the work.by mirsadm
6/10/2026 at 2:36:00 AM
Most of HN is stuck in this fantasyland where they insist their local LLM setup is comparable to Opus 4.8 or GPT 5.5. It's like a collective delusion, I've never seen anything like it.by solenoid0937
6/10/2026 at 2:41:09 AM
You can get really good results with Chinese models. You're putting Opus and GPT on too high of a pedestal.by written-beyond
6/10/2026 at 2:56:36 AM
I use Chinese models (for simple personal projects), they just don't compare to GPT or Opus for any serious work.I do not know why every Chinese model fan thinks that people that aren't impressed by them simply don't use them.
by solenoid0937
6/10/2026 at 5:36:55 AM
Wast majority of software engineers do very little except of moving JSONs around and building CRUDs.It's quite obvious that when you dont try to do something particularly complex there will be literally no difference between GPT, Claude, Gemini and Deepseek.
Fot many things I'm doing in gamedev Gemini 2.5 Pro was already good enough even though it released more than year ago.
Once you pass certain threshold it's just enough.
by SXX
6/10/2026 at 2:51:49 AM
Some of the new and open models are very capable now, The truth is, the value of the model is in the mind of the user - the big names are impressive to those who know little and are dazed by little, but they are bound to end up wrong regardless of how good the model is.by bigbadfeline
6/10/2026 at 3:34:42 AM
This is ridiculous. How about the rational users who use the best current model regardless of brand? The value of the model is in the quality of the output over time. I give every major model a chance. Coding and scripts in the chat are nothing compared to the power of agentic SWEEEEEEEEE. And nothing is remotely close to claude and gpt. If you're comfortable with being well behind SOTA intelligence, then good for you, but some of us prefer to be efficient with our time and resources. With your mindset, you will never truly SWEEEEEEEEEEEEEEEEEEEEby jatora
6/10/2026 at 4:59:21 AM
<The memory makers can't just sell to only AI companies forever, if they do Chinese manufacturers will move in and eventually eat them from below (as has happened many times before)>Unfortunately this has been happening almost forever. You can spend 10s of thousands of $$ design, prototyping, building & marketing anything, whether a physical product or software & some company where the wages are lower are going to come along, build it cheaper (not necessarily better quality either) and ship it to the world.
As a result, the other countries import more stuff "because it is cheaper" and eventually local manufacturing dwindles away to virtually nothing. That is the case here in Australia. Our manufacturing base has shrunk to stuff all compared to what we had 30 years ago & as a result we are poorer as a nation for it
by ian_holt
6/10/2026 at 5:23:44 AM
>Unfortunately this has been happening almost forever. You can spend 10s of thousands of $$ design, prototyping, building & marketing anything, whether a physical product or software & some company where the wages are lower are going to come along, build it cheaper (not necessarily better quality either) and ship it to the world.>As a result, the other countries import more stuff "because it is cheaper" and eventually local manufacturing dwindles away to virtually nothing. That is the case here in Australia. Our manufacturing base has shrunk to stuff all compared to what we had 30 years ago & as a result we are poorer as a nation for it
Then the companies in that country need to learn how to be more competitive and governments need to learn how not to overregulate, overtax and raise barriers.
by DeathArrow
6/10/2026 at 5:29:50 AM
> some company where the wages are lower are going to come along, build it cheaper (not necessarily better quality either) and ship it to the world.Yeah, it's called competition. It existed even in the socialist countries (where is was called "socialist competition/emulation").
by Joker_vD
6/10/2026 at 5:30:19 AM
Given that Anthropic has never released anything open weights I wouldn’t count on the fact that they view finetuning Gemma 4 as something allowable. I think they think nobody other than Anthropic should have AIby mips_avatar
6/10/2026 at 1:45:59 AM
> The moat looks deep todayDoes it? What can this model do that I both want and cannot already do?
Anthropic made a nice little post saying how dangerous it is, because it is good enough to eat their own business. But I don't want to eat their business. They also said it was good at playing Slay the Spire, but I can't think of anything more insulting than have a machine do that in my place. That's MY comfort game, not something for a stupid Clanker to take away.
They did not provide any other use case.
by iplaymyowngames
6/10/2026 at 2:05:05 AM
The moat is not the model, it's the harness. I wager that's one of the main reasons why Google made Antigravity closed source.by Ferret7446
6/10/2026 at 9:14:52 AM
I don't feel strongly about anything most folks are arguing back and forth about, but this one is obviously wrong.Everybody and their brother has made an agent. There are toolkits. You can whip one up in an afternoon.
Not only that, I've found models often perform worse, or at least cost more and take longer, in a big complicated agent like Claude Code, including Anthropic models. They want proprietary doodads hanging off the side (multi agent orchestration, memory, things of that nature) to matter, because they can lock you into tools like that. But, top models can do everything with bash.
by SwellJoe
6/10/2026 at 2:54:44 AM
But harness is relatively easy to code yourself?They're just system prompt composer, with some tool functions that the LLM can invoke. I've vibe coded my own in just one day.
by dudisubekti
6/10/2026 at 6:00:20 AM
But is there anything preventing them from putting their own proprietary wolfram alpha/prolog/super duper expert system in there?by Paradigma11
6/10/2026 at 10:18:20 AM
I guess... but I think, at its core, a good coding harness usually includes: - well-crafted system prompt that follows best practices - good contextual reminder prompts (when an llm got stuck in an infinite loop and times out, forgets how to use tools, or needs recurring best practice reminders, etc) - well-written ergonomic tools the llm can use (read/write files, read diffs, browse the internet, etc)I dont think these are anything special. The deepest moat I can think of is, proprietary models can be specifically trained to use their proprietary harnesses, so they are more token-efficient and make less tool call and file editing mistakes.
However in my experience, I'm as comfortable working with my own homemade harness as with Claude Code, so I don't think it's a deep moat...
by dudisubekti
6/10/2026 at 9:17:02 AM
Only that it would just slow down the model and make it dumber.You can't tool and harness a weak model into strength and you probably don't improve top models with boondoggles.
by SwellJoe
6/10/2026 at 5:01:24 AM
What makes you say usage billing is cost prohibitive? I use as much flagship model as I could possibly want and it's like four figures a month. That's totally doable compared to SWE pay.by loeg
6/10/2026 at 6:38:06 AM
There is no training from scratch though. It's kind of, "first create the universe" framing pretention. All models rely heavily on the large corpus that humanity built through large span of time. And of course humanity didn't create the condition of its emergence.by psychoslave