The Shadow LLM API Resale Market
A large, opaque resale market for frontier LLM APIs has emerged to serve users blocked from OpenAI, Anthropic and Google endpoints (somewhat like a VPN). Two independent papers in the past two months provide the first systematic evidence that a substantial fraction of these intermediaries silently substitute models, truncate context, or misreport billing. Apart from inflated price, the shadow market maybe more chaotic than ideal: for example, shadow-API providers would steal tokens by using fake educational accounts. The claim to provide expensive good models while quietly substituting for cheaper ones. ...