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Cheap capable AI floods market, putting OpenAI and Anthropic edge to the test

As AI increasingly becomes a widely usable commodity, OpenAI and Anthropic appear to be losing some of their earlier standing. The Wall Street Journal reported that know-how for building advanced AI is spreading and many companies now offer usable AI more cheaply, potentially weakening the two firms’ competitive advantage and entry barriers. Chinese startups and big tech, and U.S. challengers, are emerging. Distillation and open research disclosures are cited as accelerants. OpenAI and Anthropic are pursuing new moats, while power access may become a key edge.