// ai model commoditization

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Why AI Agents All Do the Same Thing

The current wave of AI agents rely on similar transformer-based reasoning loops and tool-calling patterns. They compete on marginal improvements—speed, cost, domain tuning—rather than fundamentally different approaches to problem-solving. This uniformity reflects both the technical constraints of current LLMs and venture capital's tendency to fund variations on proven patterns. The market pressure tilts toward consolidation. Either the underlying model provider wins by bundling agents, or specialized verticalized players win by going deep in specific domains rather than broad. Generalist agent startups occupy the weakest position.