The problem (okay, one of the problems) with renting other people's models is, as you mentioned, that they can and will change out the model without notifying you ahead of time, and you don't always get to control which model you use. (They might decide to retire it, and you won't be able to get it back if they do).

Which is why (well, part of why) I think the long-term trend will be towards self-hosting models. Right now the frontier models are far enough ahead of the self-hosted ones that there are lots of people willing to pay by the token to rent someone else's model, because they get more value for money from that than from self-hosting models.

But the frontier companies won't be able to keep up their current levels of expenditure forever. At some point the investors are going to say "Hey, so, um, when am I going to see some return on my investment?" and then the current subsidized subscriptions (including the one my employer uses) are going to go away, much like what happened with Copilot this month.

And then the locally-hosted models are going to suddenly look like a more attractive picture. Because where you might have been willing to spend $100/month/employee to rent time on models in someone else's data center, you might suddenly balk at spending $500/month/employee. You might say "Hey, you know what? A $50,000 up-front capital investment is only, what, one month's worth of subscriptions for our 100 employees? Yeah, okay, I'll approve the hardware purchase. Get that self-hosted model set up and then we'll cancel the subscription and switch over."

Not everyone is going to do that. But once the locally-hosted models are good enough, the first few people who do so and report success are going to start a snowball effect. And it will likely be driven by money first, but it will also have the effect, that people will slowly discover, of meaning that you can better predict the model you're using. It will continue to work the same way next year that it is working this year; or if it doesn't, it's because you chose to install the new version.

And when that happens (I'm saying "when", not "if" because although it might take some time, I think it's inevitable in the long run), the frontier-model rental companies are going to struggle to stay afloat. Except for the ones who saw this coming and transitioned to a non-subscription income source somehow (maybe by selling licenses to self-host their frontier models for $$BIGNUM), or who have some other revenue stream besides renting out models.