Since I wrote Commoditization of Large Language Models almost two months ago, things have progressed much faster. There are now two serious competitors to DALL-E: Midjourney and  Stable Diffusion. DALL-E pricing hasn't changed, but GPT-3 is now cheaper.

Two observations:

On scale, DALLE-2 (v1) had 12 billion parameters. DALL-2 (v2) only had 3.5 billion parameters (combined with another 1.5 billion parameter model for enhancing the resolution).

Stable diffusion only has 890 million parameters.

On cost, training the Stable Diffusion model from scratch costs less than $600k (tweet 1, tweet 2).

Cost will only be a differentiator for a short time. The Stable Diffusion code is open-sourced, and you'll soon be able to run it on your laptop. Using the different models, you can still tell there are some differences in how well they respond to prompts (so far, DALL-E is still the best). But since none of these models have access to proprietary datasets, you can imagine that they will probably converge in quality.

While the business model is still TBD, different ways are emerging to differentiate and go to market.