For decades, software program firms commanded premium pricing not solely for their knowledge, but for his or her interfaces. The specialised keyboards. The Excel integrations. Firms built processes hardcoded to particular tools. Switching meant massive productiveness loss. The workflow automations. Customers spent years mastering these programs. I haven't used Google in a yr. An LLM chat is my browser. Soon, data employees will not use specialized software program interfaces either. The LLM chat can be their interface to the whole lot. This is not incremental change. This is the completion of Ben Thomson's Aggregation Theory. The interface WAS the product. Ben Thompson's framework reshaped how we think about web economics. The value chain was simple: Suppliers Distributors Consumers. Tv networks controlled what content received aired. Pre-web, excessive distribution costs created leverage for distributors. Retailers selected which merchandise reached shelves. Newspapers determined which tales mattered. Then distribution costs collapsed to zero. Transaction prices adopted. Power shifted from distributors to a brand new species: aggregators. The classic aggregators emerged: Google aggregated websites via search. Fb aggregated content material by way of social graph. Uber and Airbnb aggregated bodily provide through mobile apps. Amazon aggregated merchants by way of market. The aggregator wins by proudly owning the buyer relationship, commoditizing suppliers until they turn out to be interchangeable. Better UX More users More suppliers _ Higher UX. That is everything an LLM needs. The $50K website turns into a textual content file and an API endpoint. No plugins to put in. No interface to build. No keyboard shortcuts to be taught. This created a moat: integration effort. Simply knowledge, accessible by way of API. Even if data was commoditized, the cost of switching APIs was non-trivial. Someone had to put in writing new code, check edge instances, handle errors otherwise.
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