AI Founder's Bitter Lesson. Chapter 2 - No Power

In this article by Lukas Petersson, the focus is on the competitive dynamics between vertical and horizontal AI products. While vertical AI solutions were initially first to market and use domain-specific knowledge constraints, they risk being outperformed by more flexible, horizontal AI models as computing power evolves. The major challenge for verticals lies in their inability to establish sturdy market defenses within Hamilton Helmer’s 7 Powers framework, with cornered resources being a rare exception that could provide a competitive advantage.

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