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We’re already seeing a lot of competition between LLMs. They are quickly becoming commodities. Margins will approach zero and the real value proposition will be with consumer products that extend beyond an <input type=“text” />.

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I disagree they will become commodities because most of my use cases are more sensitive to accuracy than cost. We typically have usage volume that isn't absurd and for large enterprise customers our LLM budget is a rounding error. Meanwhile our product saves them many hours of a data engineer. If we can pay double to get a 10% performance boost we will do so gladly. You can already see this in LLM pricing where they have cheap models that deliver low performance a My bet is that 80% of profits will be made on the workloads that are sensitive to accuracy and workloads where running an LLM at all gets you most of the benefit will become very commoditized.

I agree with you. I'm using a couple of different LLMs depending on what I'm doing and what happens to be easiest but the difference between them is marginal in my experience.

The only play for OpenAI et al in my opinion is to try to pull up the draw bridge behind them by getting legislation passed which makes compliance prohibitively difficult if that's not your core business.

I think OpenAI has a good future by having much better training data. That is a super hard problem that requires thousands of low cost workers in developing countries to tag and arrange training data.

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