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KYC

Corgi Digital Banking & Fintech Infrastructure ETF

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Could frontier AI labs eventually acquire KYC/identity providers?

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VPN bro. Not having KYC is awesome

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I do not see any of these frontier model providers acquiring a KYC company. First, they could probably build it themselves rather easily especially using AI. But second, that will not solve the problem. The output-farming problem, if it really is a problem, can be controlled/constrained like some have already said with rate limits, or other similar things. But you have to ask, is it really a problem? What is the difference from these models using data owned by others, like media companies, to train their frontier models. Isn't that the same thing? Other companies, open source models, use outputs of frontier models to train their open source models. Frontier models used other companies data to train their models. It's pretty much the same thing. They need to have superior models to differentiate themselves and keep staying ahead of the pack.

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I could see partnerships before acquisitions. KYC helps with abuse control and enterprise trust, but it does not fully solve output-farming because one verified identity can still generate a huge amount of data through automation. Feels more likely that the economic moat ends up being rate limits, enterprise distribution, and private deployment options rather than just buying an identity vendor.

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