Notes from this article

Primary publication - none

20th century is defined for business as the quest for scale: fixed costs can be divided over larger volumes.

AI/ML takes the cost for entering a new market (collecting enough information to be relevant), to the point where it is nearly neglictable.

As a consequence a new challenger is competitive against an incumbent as it does not have the previous investements to recover.

Examples:

• Stripe is competing against big banks
• Airbnb vs hotel chains

Questions:

• Interesting idea, but how much data would one need to compete against Google, what would be the cost of such data acquisition?