What I take from this is that models are already commoditized, and it’s pretty clear nobody has a moat: routing for the models, they can be swapped whenever new models are released, AI labs will have to continue to run on the treadmill non stop or be replaced. Long term I cannot imagine that business will be high margin. Routing for the harness, so anything that differentiate a provider vs another isn’t exposed to the user and isn’t too relevant.

One more datapoint for the thesis that OpenAI and anthropic aren’t viable, sustainable businesses, and cannot justify their $1T valuation and the level of compute commitment (reminder that OpenAI committed to >$750B in infra spending for 2030)