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I assumed they were open source but now that I checked they are not, they say "Open" because they route to third-party open models. Yikes. Another VC crap layer?

The Open in OpenRouter is the same as in OpenSea, as it's the same founder. Make of that what you will.

I make of it they are good at riding hype cycles

tbh anyone can rig up something like openrouter in a few nights with claude code.

its just a proxy

Today your statement is a little too ambitious but I agree with the overall point that the inherent effort based moat in SaaS is mostly gone and now it is really about personalizing your own.

The most common counter-argument that I've seen here is " Yes, but no organization wants to manage all of their different operational tools. They would rather just outsource that responsibility to third-party entities".

I'm not sure I fully agree with that counter. Because agents can be viewed as third party entities in some sense. If not today then maybe soon.

An agent you can sue would count as a legitimate third party entity. Suing today's agents won't get you very far.

Open as in single API layer which allows you to swap the model under it.