> Durable rents will end up going to those who owns the scarce assets, zuck is building those as we speak.
I'm following but maybe I'm a little dense here: what are the scarce assets that Meta is building in this analogy?
> Durable rents will end up going to those who owns the scarce assets, zuck is building those as we speak.
I'm following but maybe I'm a little dense here: what are the scarce assets that Meta is building in this analogy?
In short, physical infrastructure and talent.
Of course you need talent but supply seems reasonably high. We have openAI, anthropic, xAI, meta, Xiaomi, deepseek, Alibaba, z.ai, Mistral, reflection, and Google all producing exceptional models.
The biggest differentiating factor seems to be compute. I know most Chinese labs would really like more compute. Google and xAI too, but largely because they sold compute to their competitors.
Compute, prop. data, existing network effects.