Equal footing, equal opportunity

Over the weekend I stumbled upon the following chart:

I have never seen new technology commoditise this rapidly. Within months the price for one million tokens went from $30 to effectively $0. And when something becomes a commodity, customers stop caring so much about the supplier and simply go with the most accessible one.

The rapid commoditisation of models and tokens does send a clear message—companies must compete in other areas, where they can generate enduring advantage. After all, one of the reasons it pays off to be innovative is the ability to maintain higher margins.

Either way, while this commodisation might not be what the market leaders want, I see it as an overall win for the customers. This will allow them to focus less on the provider, and more on exploring ways to leverage this new technology to create value for themselves and their customers.

Win-win-win.