> I switched to Gemini with my new phone and I literally couldn't tell a difference. It is actually crazy how small the cost of switching is for LLMs. It feels like AI is more like a commodity than a service.

It is. It's wild to me that all these VCs pouring money into AI companies don't know what a value-chain is.

Tokens are the bottom of the value-chain; it's where the lowest margins exist because the product at that level is a widely available commodity.

I wrote about this already (shameless plug: https://www.rundata.co.za/blog/index.html?the-ai-value-chain )

On top of that, the on-device models have got stronger and stronger as the base models + RL has got better. You can do on your laptop now what 2 years ago was state of the art.