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by pr337h4m 381 days ago
Uber and Lyft rely on network effects, which do not exist in any meaningful sense for LLM API providers.
2 comments

Yeah, 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".
Brand 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.
No network effect + already profitable.

Not at all like Uber, let it go

Incoherent response.