131–140 of 279 posts
Why does a company with a seemingly health business model that is already churning profits and doesnt require large CapEx, taking losses to capture users, need to be raising this kind of capital?
Aren’t they totally dependent on the good will of the model providers?
It took me quite a while to come round to OpenRouter. Originally I didn't understand why anyone would put a proxy between them and an LLM, but it actually adds some quite significant value: 1. By far the lowest friction way to support and try out all the models. 2. They offer billing caps! Most model providers still don't do this [EDIT: maybe they do, see reply comment], but if you're going to run anything in public…
I love their product and use them myself. But where's the value proposition for investors? Unless they get purchased by one of the large cloud providers, they will get pushed out of the market sooner or later. What's the value proposition for the typical AWS startup to go with openrouter, if Amazon offers similar rates with direct integration into all their other offerings? The only reason OpenRouter can exist at the…
Earlier quoted context omitted.
Another neat thing is, they publish hourly caching states for ALL model/provider combinations. I did some research on it to come up with a provider tiers list and found a bunch of open-source 3rd party hosts are simply trash tier https://dirac.run/posts/cache-hit-rates-agents
Agents push the full conversation history into context every turn Why? Maybe this is a dumb question, but why wouldn't an agent "keep the conversation going", like I do when interacting with an LLM through a web page? (I understand how it's impractical for long-running tasks where the agent has to wait days for the next input, but assume that's not the majority of use cases)
Technically it does retrieve the entire history and reevaulate it since the LLM is stateless. Just more ergonomic for the developer.
And prompt caching helps cut the costs down when a conversation drags on.
How quickly they get new models supported on the API and it just works, is insane!
At what valuation? I’m a user and I like the routing layer and not having to change things up too much, but I’m not sure why a solid business model for this product would require this much money at this kind of valuation unless they’re trying to buy data center capacity to self-host models eventually?
It took me quite a while to come round to OpenRouter. Originally I didn't understand why anyone would put a proxy between them and an LLM, but it actually adds some quite significant value: 1. By far the lowest friction way to support and try out all the models. 2. They offer billing caps! Most model providers still don't do this [EDIT: maybe they do, see reply comment], but if you're going to run anything in public…
I love their product and use them myself. But where's the value proposition for investors? Unless they get purchased by one of the large cloud providers, they will get pushed out of the market sooner or later. What's the value proposition for the typical AWS startup to go with openrouter, if Amazon offers similar rates with direct integration into all their other offerings? The only reason OpenRouter can exist at the…
Established restaurants didn't need DoorDash because they were already on everyone's speed dial. But new or small restaurants couldn't afford to advertise or maintain a team of delivery people. DoorDash created a two-sided marketplace that made it a lot easier for new entrants to bootstrap. Today even the established restaurants have to pay them their tithe because hungry people have learned to start with the DoorDash app. A bit of a prisoner's dilemma.
If OpenRouter plays its cards right and gets very lucky, a large number of people will configure their hungry LLM clients to start with OpenRouter, and then LLM providers will have to join the marketplace or else miss out on all those customers.
What's the business model? Their core functionality, while useful, seems like something that will just be an open-source package. I assume there will be some Saas layer on top of it?
Too bad api use is like 100x more expensive than subscriptions for the big 3.
I think subscriptions are not going to last for serious users. Great to use them while we can, but AI does not fit the “power user subsidizes free/cheap users” model, nor the “support tens of thousands of customers from a small number of cheap servers” model. Everyone is a power user, and everything is computationally expensive.