Comment by skybrian

My understanding is that it’s a common LLM API with common billing for multiple LLM providers. You can switch between LLM providers whenever you like, and the way you pay for API usage doesn’t change. You don’t even need to create an account with the LLM provider.

I don’t use OpenRouter, but exe.dev has a similar feature. I choose which LLM to use in a pulldown menu.

But the downside of this is that you’re paying API prices, which are much higher than subscription prices.

So, recently they added a way to connect a ChatGPT subscription and I mostly use that. But I can try out other models any time.

So this doesn’t seem like all that much of a moat to me, but it’s still a convenient service to have, since you aren’t going to set up billing with all the LLM providers in an afternoon. I expect there will be multiple competitive businesses.

Compare with what distributors do for physical goods.