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LLMs will be a commodity

Reddit r/artificial / 4/29/2026

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Key Points

  • The article argues that once LLM research reaches a plateau, future progress will shift toward optimization and distillation rather than fundamentally new model value.
  • It predicts that the “LLM layer” will behave like a commodity, meaning its capabilities and limitations (including hallucinations) will become standard rather than differentiating.
  • It emphasizes that product design should assume LLM outputs are not fully reliable, requiring human-in-the-loop review even for relatively simple qualitative tasks.
  • The core message is that competitive advantage will move to the application layer—specifically the product choice and UX direction that best fit these constraints.
  • The author frames hallucinations as a persistent reality and suggests workflows must be built around verifying what the model does.

As soon as we hit a research plateau, a new era of optimization and distillation will begin, and the value will be captured by the application layer that has bet on the right product and UX direction

For the next generation of products, we need to assume the LLM layer will be a commodity, with all the limitations of the current underlying technology baked in (hallucinations are here to stay)

If you're not designing your product around a human-in-the-loop experience, you're essentially betting that LLMs will be reliable when in reality they're hallucination machines. That means you always need to review what they've done, no matter how simple the task (ps: here I am mostly referring to qualitative tasks, not quantitative ones)

submitted by /u/tiguidoio
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