I see posts all the time on HN about which models from which providers offer the most bang-for-the-buck, and how to minimize token usage and still get optimal results, so it appears that competition is working.
1. Self hosting
2. Chinese models
3. Running it locally. Requires upfront cost and compromises on TPS.
Hell, I use 3 different providers, and I currently don't give a dime to Anthropic or OpenAI.