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Uber and Lyft rely on network effects, which do not exist in any meaningful sense for LLM API providers.
by pr337h4m 1y ago
Uber and Lyft rely on network effects, which do not exist in any meaningful sense for LLM API providers.
- nitwit005 1y agoBrand is huge in every market. It's hard to get people to visit your website at all. People know about OpenAI, and look it up.
- n4r9 1y agoYeah, that's definitely a factor in the attempt to "undercut and outlast". I guess I have two defenses: firstly, network effects might not be crucial, it might be enough for there to be a small cost to changing provider; secondly, I imagine the providers are finding ways to use network effects to bolster adoption - e.g. "Find me a party date when all my friends are free, book the catering and message them with invites".