this post was submitted on 18 Jun 2026
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The issue for OpenAI is that their main competitor, Anthropic, has a better product than they do and is currently scooping up their market share. So that means they’re going to have to spend billions more to try to catch up, and Anthropic won’t be standing still in the mean time.
This sort of competitive arms race can burn vast sums of money and result in multiple companies going out of business if they fall far enough behind to lose investor confidence. An even bigger issue (for investors) is that no one has been able to demonstrate an AI “moat” which would allow a company to gain any traction. Without a moat, customers can jump ship the instant a competitor offers a better model.