Forgive me for starting with a cliché, a piece of finance jargon that has recently slipped into the tech lexicon, but I’m afraid I must talk about “moats.” Popularized decades ago by Warren Buffett to refer to a company’s competitive advantage, the word found its way into Silicon Valley pitch decks when a memo purportedly leaked from Google , titled “We Have No Moat, and Neither Does OpenAI,” fretted that open-source AI would pillage Big Tech’s castle.

A few years on, the castle walls remain safe. Apart from a brief bout of panic when DeepSeek first appeared, open-source AI models have not vastly outperformed proprietary models. Still, none of the frontier labs—OpenAI, Anthropic, Google—has a moat to speak of.

The company that does have a moat is Nvidia. CEO Jensen Huang has called it his most precious “treasure.” It is not, as you might assume for a chip company , a piece of hardware. It’s something called CUDA.…