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Full post:
https://natesnewsletter.substack.com/p/beyond-model-routing?r=1z4sm5&utm_campaign=post&utm_medium=web&showWelcomeOnShare=true
Everyone in AI is saying the same thing right now: route your work to cheaper models. It’s the right call — and it’s about to be table stakes, which means the real advantage is moving to a layer almost nobody is budgeting for.
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What’s really happening when AI makes execution cheap but everything starts to feel the same?
The common story is that cheap models turn good work into a commodity — but the real question is who can imagine the work that isn’t on anyone’s list yet.
In this video, I share the inside scoop on where AI value moves once execution gets cheap:
– Why a $1 model now ties a $9 model on routine work
– How one engineer’s $40 job reveals where value moved
– What separated Apple from BlackBerry with equal execution
– Where your real leverage lives once routing is table stakes
Keep routing execution to cheap models — but if your task list hasn’t changed in a year, your constraint on AI returns is imagination and permission, not price.
Chapters:
00:00 Better tools, the same results
00:49 The $40 test: one buck ties nine
01:39 Everyone says route to cheaper models
02:26 The test the cheap models couldn’t touch
04:06 Cheap engine, frontier steering
05:38 BlackBerry, Apple, and the multiplier
06:37 Has your task list actually changed
08:07 The Fable 5 porch marketing example
11:30 Electrification and redesigning the building
12:28 How Stripe earned its one-day migration
13:31 You can’t hire your way out of this
14:50 The blackout, and where your 10x comes from
Listen to this video as a podcast.
Spotify: https://open.spotify.com/show/0gkFdjd1wptEKJKLu9LbZ4
Apple Podcasts: https://podcasts.apple.com/us/podcast/ai-news-strategy-daily-with-nate-b-jones/id1877109372
