Foundational Models Will Cannibalize the SaaS Built on Top of Them

LLMs absorb the functionality of apps built on top of them

The common assumption is that an entire SaaS ecosystem will blossom atop foundational models, much like mobile apps atop iOS or web services atop AWS. But this analogy breaks down under the gravity of model centralization and scope creep.

Here's the deeper structural insight:

Foundational models aren’t just platforms. They’re agglomerative engines. As the…