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I believe it's to create barriers to entry and make the space harder to compete in.

There's still a ton of value in the lower end of the market by capability, and it's easier for more companies to compete in. If you make the cost floor for that basically free you eliminate everyone else's ability to make any profit there and then leverage that into building a product that can also compete at the higher end. This makes it harder for a new market entrant to compete by increasing the minimum capability and capital investment required to make a profit in this space.



Oh, wow. Following this line of thinking, what seems like a noble gesture on the surface is a scorched earth approach in reality.




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