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Just like it would take 10 seconds to buy her a Pepsi instead of her preferred Coke.

Would you?

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Stickyness absolutely helps. But it won't get you anywhere close to a MAG7 operating margin. I think we are already seeing the start of price wars. I cancelled my ChatGPT subscription once i realized Gemini Pro was included in my Google Workspace and never looked back for a second.

Coke doesn't change their recipe every year.

If you could move the taste with the ease of OpenAI's Export Data tool? Sure, why not?

No, because that’s a product you buy for flavor and Pepsi is a different flavor.

UI style and response tone aren’t flavors?

now youre arguing openAI has a distinctly better product not just that they are hoping for high switching costs

No, not at all.

I am arguing that “distinctly better” isn’t the most important thing in consumer products. Habits, familiarity, and individual taste at far far more important.

People just build affinity to products. The vast majority of people buy the same brand toothpaste they grew up with. “Better” isn’t even a consideration.


If it taste as good and is cheaper, sure.

10 seconds to buy my wife a Pepsi? Why that estimate seems quite absurd.

First I would have to walk 10 miles into town. Then I would have to locate a purveyor of goods that carried Pepsi-Cola products...

Then I reckon we would spend a fort-minute dickering over price.

And finally trudging back home with my Pepsi product in tow.

Why, I'd be lucky to accomplish this herculean task in the very same evening.




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