Larry Ellison: Rapid Commercialization of AI, Proprietary Data as the Only Moat
Larry Ellison stated that AI is rapidly being commercialized, as most models are trained on the same publicly available internet data.
The true competitive advantage is no longer the model itself, but the ability to acquire exclusive proprietary datasets, which may be the only remaining moat.
Market mechanisms are accelerating AI companies' pursuit of proprietary dataset partnerships and acquisitions; event-driven funding is shifting from general large models to vertical application companies with unique data; Oracle and data-intensive AI platforms are benefiting, while providers of general models trained on public data are under pressure.
Source: Public Information
ABAB AI Insight
Larry Ellison has long emphasized that data is a core asset for businesses. Previously, Oracle shifted its focus to cloud databases and AI data infrastructure. This viewpoint continues his assessment of the value of data privatization, highlighting the issue of model performance homogenization caused by public data.
In terms of capital pathways, companies are reallocating resources from merely increasing parameter scale to building proprietary datasets, forming differentiated training bases through internal operational data, exclusive industry data, or strategic partnerships, shifting AI competitiveness from general capabilities to high precision and low hallucination performance in specific fields.
Similar to how Google relies on search and YouTube data and Meta on social data to build advantages, many companies are strengthening data walls after 2025; the current AI industry is at a critical stage of transitioning from a "model scale competition" to a "data quality and exclusivity competition."
Essentially, this is about capital concentration, shifting AI training resources from the ocean of public data to closed high-quality datasets, as public data can no longer provide significant differentiation. Exclusive datasets become the last barrier for a few companies to maintain long-term pricing power and performance leadership.
ABAB News · Cognitive Law
The day data becomes public is the beginning of AI commercialization. Models are becoming increasingly similar, and the only thing that truly differentiates them is who holds the data that others cannot access. The future moat of AI will shift from parameter quantity to the battle for data ownership.