Jack Dorsey: AI Companies No Longer Have Long-Term Advantages

Jack Dorsey, CEO of Block, posted on X on October 24, stating "there is no moat." The post garnered over 3.5 million views. The phrase echoes a leaked Google memo from 2023 warning that open AI would undermine the leadership of Google and OpenAI.

The term is borrowed from investor Warren Buffett's lexicon: he refers to a "moat" as a sustainable advantage that protects a company from competitors.

Dorsey did not link the post to any specific product, but it appeared shortly after he introduced Dessa—a voice AI model from a small research lab within Block. The team claims to have trained Dessa solely on human interaction, without text and pre-trained models; according to Block, a single Nvidia GB200 NVL72 rack was sufficient. Dorsey described the model as compact enough to run on a MacBook. A small group of AI security researchers received early access before the wide release. One user associated the "there is no moat" post with this launch, suggesting that the payment company is now creating AI comparable to the developments of major labs, making long-term leadership impossible.

Dorsey has previously made similar arguments. In February, he cut about 40% of Block's staff, stating that AI tools and small teams allow for new ways of working.

Michael Saylor, Executive Chairman of Strategy, countered that the moat Dorsey refers to is Bitcoin itself. His response aligns with a longstanding position: Strategy holds the largest corporate reserve of bitcoins, and Saylor has long called Bitcoin a shield against inflation and currency devaluation. "Bitcoin is the moat," he wrote on October 25. Earlier in October, Saylor mentioned that AI expenses are pressuring Bitcoin alongside trade policy and rising yields.

Elon Musk chose a different metaphor, referencing ancient Sparta, which relied on soldiers rather than walls: "Sparta never had a moat." Musk has previously praised Bitcoin's resilience, once saying the network has "no throat to choke."

Dorsey himself has supported Bitcoin for many years: in April, Block facilitated a $1 million Bitcoin giveaway through Cash App. The debate illustrates how the AI race now intersects with cryptocurrencies. As software becomes cheaper to replicate, Saylor bets that Bitcoin's network size and fixed supply will be an enduring advantage.