No, you don’t need a moat

A leaked Google memo is going around and it’s worth a read. The author (AI researcher inside of Google) thinks that Google has no strategic edge in the future of AI and needs to change direction. The analysis is good, but the conclusion is wrong.

In this post:

  • There are different kinds of moats – the public discussion is about a special case moat
  • Moats are neither necessary nor sufficient for a successful business. If that sounds irrational that’s because it is
  • Your toaster is just a live wire in a box
  • Google has a gigantic AI moat
  • In the end this is actually good news for Google, not bad news
Continue reading “No, you don’t need a moat”