1/ Foundation Models: Differentiated Good or Commodity? Since the advent of models like GPT 3.5, there has been a significant debate about the nature of silicon intelligence. Is it a differentiated and specialized good with potentially infinite pricing power? Or is it a commodity, destined for a race to zero, with all the real value accruing at the application layer? In this video and accompanying thread I explore both possibilities (hint: I think one is way more likely).