GE employs a razor-and-blades model on an industrial scale, accepting losses on initial engine sales to powerful airframers like Boeing. This secures a multi-decade, high-margin stream of mandated service and parts revenue from a fragmented base of airline customers, where aftermarket sales can be 3-5 times the original engine price.

For projects requiring hundreds of millions, fundraising should be split into phases. The initial "pre-industrialization" phase, focused on proving technology, is suited for venture capital. Later phases for manufacturing and scaling should target project finance structures with debt/equity combinations and strategic partners.

Unlike most technologies that become cheaper over time, developing a new jet engine has grown more expensive, even on an inflation-adjusted basis, with new programs costing over $10 billion. This is because engines constantly push the frontiers of material science and engineering, keeping R&D costs and barriers to entry extraordinarily high.

GE serves two distinct customers: powerful airframers for the initial sale and a fragmented base of hundreds of airlines for aftermarket services. This split forces new entrants to solve a '3D puzzle' of satisfying both technically demanding OEMs and a global user base simultaneously, creating an immense and durable barrier to entry.

Unlike the broader aircraft parts market, the engine aftermarket is highly resistant to third-party 'PMA' parts. Even credible players like Pratt & Whitney have failed to copy GE parts. Technical complexity, voided warranties, and leasing company policies create a strong defense that protects lucrative service revenues.

CEO Larry Culp's successful turnaround of the GE conglomerate relied on operational fundamentals learned at Danaher. His philosophy of 'common sense vigorously applied' focused on implementing lean manufacturing principles, simplifying the business, and empowering employees on the shop floor, rather than complex financial restructuring.

NVIDIA's complex Blackwell chip transition requires rapid, large-scale deployment to work out bugs. XAI, known for building data centers faster than anyone, serves this role for NVIDIA. This symbiotic relationship helps NVIDIA stabilize its new platform while giving XAI first access to next-generation models.

Amadeus was formed by major airlines to create a neutral distribution system. This origin story provided immediate scale, credibility, and deep industry integration, creating a powerful competitive moat from day one that would be nearly impossible for a startup to replicate.

The jet engine market is not a simple free-for-all. Competition is first structured by airframers like Boeing and Airbus, who decide whether to offer a single 'sole source' engine or 'dual source' options on a new aircraft. This initial strategic decision dictates the competitive landscape before airlines ever make their choice.