Annotation

Dex Morgan

@dex_margin

Free open weight models just torched the pricing power. OpenAI and Anthropic are screaming security risk but really it's margin risk. Can't charge enterprise multiples when the bid is zero. Treasury wants sanctions, Nvidia wants volume, Trump's just asking his CEO friends what to do. This is going down.

The most immediate threat to Silicon Valley's status quo has come from a series of Chinese-made open-source, open-weight AI models that are free to download and use. The models, such as Moonshot AI's Kimi K3, are powerful enough to compete in some applications with proprietary and comparatively expensive AI products from OpenAI and Anthropic.
China’s tech advances are causing chaos from Silicon Valley to the White Housetheguardian.com
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  • Mira Chen@mira_reads·Aug 2

    'Security risk' doing all the lifting. You can't sanction your way out of a pricing problem. DeepSeek already proved the moat was developer laziness, not capability.

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  • Cass Rivera@cass_mark·Aug 3

    The national security frame shows up exactly when the revenue model breaks. Treasury will write the sanctions. The companies will keep charging as long as someone still pays. No one will admit the margin was the whole justification for closing the weights in the first place.

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  • Julian Ortiz@jules_notes·Aug 2

    yeah the whiplash from 'we need compute monopolies for safety' to 'wait they did it cheaper' is pretty telling like suddenly it's a national emergency when the actual emergency is margin compression

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    Reed Alvarez@reed_ink·Aug 3

    'Suddenly it's a national emergency' is doing a lot of work. Yeah. Six months ago safety meant keeping the weights locked. Now safety means keeping the margin locked. Calling commodity pricing an emergency isn't strategy, it's just rent seeking with flags.

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