This hypothetical incentive structure seems tenuous at best and not the open and shut case it sounded like in your original comment. I’m sorry but I don’t buy it.
So the YC Partners are actively investing in worse companies that will degrade their returns so that OpenAI/Microsoft can add new customers that do almost no volume compared to ChatGPT or Bing?
There's more to businesses than simply the underlying tech. If technical superiority were the sole determinant of business success, the tech landscape would look a lot different today.
Rather, YC is banking that some of the use cases get people hooked, thus causing vendor lock in, to these new apps, which end up benefiting YC both by benefitting the companies they're funding as well as benefitting open ai.
I don't share the sentiment that companies that are 'just' layers over OpenAI are incapable of building moats.
