Lets look at the facts.

Are LLMs displacing labour? In the aggregate - not from what one can see. The aggregate statistics tell a different story e.g. the hiring of software engineers is still growing Y-o-Y.

The limits of LLMs will be put in place through financial constraints. People like you seem to think there's an infinite stream of money to fund this stuff. Not really. Its the same reason why Anthropic and OAI are now shifting focus to generate revenues and cash flows because they will not receive external funding forever.

Price of tokens is one competitive-instrument for them to achieve that but not the only one - they offer a whole lot more to enterprises that OAI and Anthropic don't.

By doing so Anthropic and OAI's valuations go crashing into the ground along with future prospects of raising funding externally.

I think this is complete madness. Im not someone that is in a job so I have the luxury to think critically about what is going on and... I just dont see it.

What I see is that LLMs will complement Labour and the excess returns of model producers will be very minimal (if at all any) due to the intense competition - keeping switching costs to a minimum (close to zero). This is before mentioning open source models which I expect to continue to improve.

There is no specialisation re. models at this moment in time so it is very likely to be the case.

OAI and Anthropic have to generate enough after-tax cash flows from operations to cover their reinvestment needs to continue going on. If they can't cover reinvestment then they will obviously lose as their offering will not be competitive.

There's no certainty they generate this amount of cash profits either. They still have a high chance of going bust, of course that gets lower - IF - they can keep ramping up revenues.