> If every company and their dog started churning out their own LLM as a business or revenue model, one can easily see the supply overwhelming demand here apart from many other problems.

This certainly seems the case on the iOS/Play stores. Primary AI apps from the big hitters (OpenAI/Gemini/Copilot etc.) but then loads of knock-off ones from those riding the AI hype train. All the knockoffs being basically wrappers around APIs from the big hitters with ads/in-app purchases.