Generally speaking, my view on the space is that this was crowded well before LLMs. We've met a lot of the folks that worked on things like drivers for printers to print PDFs in the 1990s, IDP players from the last few decades, and more recent cloud offerings.
The context today is clearly very different than it was in the IDP era though (human process with semi-structured content -> LLMs are going to reason over most human data), and so is the solution space (VLMs are an incredible new tool to help address the problem).
Given that I don't think it's surprising that companies inside and outside of YC have pivoted into offering document processing APIs over the past year. Generally speaking we don't see differentiation in the sense of just feature set since that'll converge over time, and instead primarily focus on accuracy, reliability, and scalability, all 3 of which have a very substantive impact from last mile improvements. I think the best testament I have to that is that the customers we've onboarded are very technical, and as a result are very thorough when choosing the right solution for them. That includes a company wide roll out at one of the 4 biggest tech companies, one of the 3 biggest trading firms, and a big set of AI product teams like Harvey, Rogo, ScaleAI etc.
At the end of the day I don't see VLM improvements as antagonistic to what we're doing. We already use them a lot for things like an agentic OCR (correcting mistakes from our traditional CV pipeline). On some level our customers aren't just choosing us for PDF->markdown, they're onboarding with us because they want to spend more of their time on the things that are downstream from having accurate data, and I expect that there'll be room for us to make that even more true as models improve.