American AI is locked down and proprietary. It's losing.

Link: China delivers a one-two punch to America’s AI dominance, by Robert Hart in The VergeAI models, as a product in themselves, have very little moat beyond what amounts to brand loyalty and superficial switching costs. Instead, the moat is in the enterprise services that sit around them: the deals and contracts, connectivity with enterprise systems, and quality of life features in an enterprise context.If we consider the models themselves, it’s easy to switch between them: someone could be using ChatGPT today and Claude tomorrow, with very little impact on their workflows. This is particularly true in the engineering world, where models are accessed via API: you can swap out the API and use the same prompt.Those companies can make deals to lock their customers in, but in practice there’s very little long-term technical incentive to use one vendor over another. You pick the best model for your needs and change models and vendors if another one becomes better.The US government has…