The routing layer itself — thin fees, thin moats

The middleware that performs the routing is not where the money is, and may not be where it stays. OpenRouter — the category leader, processing over $100M in annualized inference spend and more than a quadrillion tokens/year by mid-2026 — charges a flat 5.5% on credit purchases with token prices passed through at provider list rates. Its fee is roughly one-tenth the size of the savings its own category claims to deliver. The layer is also structurally commoditizing: open-source gateways (LiteLLM) replicate the unified-API function free forever, 10+ commercial competitors ship the same feature set, and the standardized OpenAI-compatible interface makes switching cost nearly zero. Stripe’s $7.5B acquisition of OpenRouter (August 2026) reads as the category’s sustainability answer: routing survives as payments infrastructure, not as a standalone margin business.

Who absorbs the cost of model fit? Not the router. The 5.5% fee is the smallest line in the fit-cost stack; the real costs of matching models to workloads — evaluation effort to pick the threshold model, retry and quality-mismatch costs when the cheap model fails, re-integration each time a current model is deprecated — are absorbed by the developer. Routing-as-a- service removes the transport problem, not the fit problem.