Patel: Tech moats are shallower than ever due to massive capex
Dylan Patel · Dylan Patel Explains the AI War While Cooking | In-Context Cooking · Feb 26, 2026 · at 44:56
SemiAnalysis founder Dylan Patel discusses how massive capital deployment by hyperscalers undermines traditional competitive moats in AI hardware.
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“I think moats are as shallow as they've ever been, right? Because how fast things are moving, the size of the numbers that are being thrown around now, right? It's hundreds of billions of dollars for each major hyperscaler. The size of the numbers are so large that you can just go and justify hiring anyone, any talent. The moats become much smaller.”
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