"For most of the past decade, the Magnificent Seven ruled technology like independent empires. Alphabet Inc. (NASDAQ:GOOGL) dominated search, Microsoft Corp. (NYSE:MSFT) controlled enterprise software, Amazon.com Inc. (NASDAQ:AMNZ) led online retail and cloud infrastructure, Meta Platforms Inc. (NASDAQ:META) owned digital advertising, Apple Inc. (NASDAQ:AAPL) commanded smartphones, Tesla Inc. (NASDAQ:TSLA) reshaped electric vehicles, and Nvidia Corp. (NASDAQ:NVDA) supplied the chips that powered the entire ecosystem."
"Each firm is scrambling to build or deploy state-of-the-art large language models and AI chips, knowing that falling behind could mean losing relevance. "Their new AI capabilities directly threaten one another's monopolies in one way or another," Yardeni said. Distinct domains have collapsed into a single, competitive arena where borders no longer matter and every company is exposed. "It is no longer enough to rule one domain," Yardeni warned."
Generative AI has blurred boundaries between search, enterprise software, online retail, advertising, devices, and chips, creating a single competitive arena. Leading technology firms are racing to develop large language models and AI-specific hardware to avoid losing relevance. Increased spending on capital and labor is required just to remain competitive, squeezing previously high margins and challenging manageable capital expenditures. Cross-domain competition exposes core franchises to direct threats from peers, eroding deep moats and forcing companies to expand capabilities quickly or risk losing market dominance.
Read at Benzinga
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