Stratechery AI and the Big Five
Jan 9, 2023
Delve into the evolution of AI technologies and how they shape major tech companies. Discover the economic intricacies of open source software and its hidden costs. Explore the enhancements in AI for on-device deployment, focusing on Apple's approach and privacy benefits. Analyze the competitive landscape among giants like Amazon and Google, while considering the disruptive potential of generative AI. Finally, reflect on AI's transformative power across industries, highlighting both challenges for established firms and opportunities for emerging leaders.
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Episode notes
Sustaining vs. Disruptive Innovation
- Clayton Christensen's "The Innovator's Dilemma" discusses sustaining and disruptive innovations.
- Sustaining innovations improve existing products, while disruptive ones offer a different value proposition.
PC Disruption
- The PC, a disruptive innovation, challenged incumbents.
- IBM outsourced key PC components due to its lower profit margin compared to mainframes.
Sources of Disruption
- Disruptive innovations often come from new market entrants, not just startups.
- Established companies can leverage existing businesses to enter new spaces successfully.
