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RE: LeoThread 2025-11-15 01-05

in LeoFinance2 days ago

This is obvious

If a company owns a digital AI, with enough training that AI can handle virtually anything in the digital realm, meaning it will eventually replicate most functionality of today's AI apps/software in many cases

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Physical AI, however, depends on massive supply chains and factories, which will remain a huge bottleneck for the next ~20 years

This explains why physical AI companies (like Tesla) look significantly undervalued, while digital AI firms—especially bolt-ons to ChatGPT, Grok, etc.—seem likely overvalued

Physical AI firms can deliver a much lower cost per unit of labor than human equivalents (e.g., drivers) and hold super-defensible moats such as factories and supply chains

The investment thesis: most AI application startups are likely to be overwhelmed by rapid expansion of foundational model providers