What’s the basis for this view? Mostly it comes down to the power of data. The argument is that the firm that gains the most users will gain the most data, and because data is rocket fuel for AI, its AI product will become stronger as a result. With a stronger AI product, the firm will attract even more users and hence more data. The cycle will continue with returns to scale, so that eventually this firm will crowd out everyone else in the market. According to Kai-Fu, “AI naturally gravitates toward monopolies … once a company has jumped out to an early lead, this kind of ongoing repeating
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