Re:CoreWeave bond yield tops 16% as AI credit stress rises
by ElProlactin on Tuesday November 10, 2026 @10:33PM
(#50449482)
> In any market margins tend to go to zero.
This just isn't true. You're talking about the textbook model of perfect competition, which is not the real world.
Commodity-like markets do tend to see outsized margins get competed away, but many markets aren't commodity-like.
Markets with network effects, economies of scale, high switching costs, significant brand differentiation, high legal and regulatory barriers to entry and heavy collusion/concentration don't function the way you claim, and there are a large number of major companies, many of them tech-related, that have delivered above-average returns year after year for many years because it's impossible for new entrants to flood the market and simply undercut them.
It's way too early to predict how this will play out for the leading AI labs like Anthropic.
The irony of your comment is that you're still using frontier models even though there are already much cheaper options available.
This just isn't true. You're talking about the textbook model of perfect competition, which is not the real world.
Commodity-like markets do tend to see outsized margins get competed away, but many markets aren't commodity-like.
Markets with network effects, economies of scale, high switching costs, significant brand differentiation, high legal and regulatory barriers to entry and heavy collusion/concentration don't function the way you claim, and there are a large number of major companies, many of them tech-related, that have delivered above-average returns year after year for many years because it's impossible for new entrants to flood the market and simply undercut them.
It's way too early to predict how this will play out for the leading AI labs like Anthropic.
The irony of your comment is that you're still using frontier models even though there are already much cheaper options available.