Re:I'm Not Convinced the AI Bubble Exists
by 4gotunameagain on Monday November 09, 2026 @08:02AM
(#50425014)
Maybe we just have a slightly different definition of moat, mine focusing more on intangible assets and switching costs.
I don't think the land of McDonalds is a moat. A factor increasing profit, sure. But anybody can by land across the street immediately, only needs money.
Even with infinite money, it is questionable when and if you can cross the moats of ASML and NVIDIA.
Re:I'm Not Convinced the AI Bubble Exists
by dist-epoch on Monday November 09, 2026 @09:39AM
(#50426274)
Under your definition of a moat, OpenAI and Anthropic also have ones.
Land is the classic cornered resource. Again a source of durable profits. You can’t open up a franchise restaurant on land owned by McDonalds; the profits from traffic earned in that location are not accessible to you.
CUDA is not a moat because it happens to be unique. CUDA provides a moat for NVIDIA due to the high switching costs and network effects it provides.
McDonalds to my knowledge does not have any network effects dynamics going on however they have entrenched switching cost mechanisms in the form of loyalty rewards programs.
If you think McDonalds has no moat you’re dreaming.