Interesting, so point 2 means that a lot of the hardware being installed now won't be able to run the frontier models of 2029? How does that change the demand for compute/models in the future, I can imagine that even if OpenAI/Anthropic have a moat in 2029 there will be so much older hardware and such a hangover from that investment boom that there will be very little installed capacity that can run it

On 1 and 3, the obvious move is to shift the bulk of the harness behind a new API that's not based on raw LLM access. Then they get to hide secret sauce behind that API and all three go from commodity to premium while simultaneously being able to try out whatever tricks they can get away with to reduce their own inference costs. I'm almost surprised this hasn't happened already.