It's not correct to say large language models are "commoditizing."

· Bits and Bobs 6/16/25
  • It's not correct to say large language models are "commoditizing."
    • Commoditizing means that each offering is effectively the same as others and there is no differentiation.
    • Intelligence is much less commodity than storage.
      • In intelligence there's more room for taste and differentiation.
    • The leading LLMs all have some distinctive differentiation and abilities.
    • Models aren't interchangeable, and there is a diversity of ones with different strengths... but there's no one provider that's obviously better than all the others.
    • Most importantly, there is a healthy and competitive race between a non-trivial number of powerful LLMs, which prevents any of the model providers from trying to flex their muscle too much.

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