LiveKit Cloud undercuts Daily.co as WebRTC cost flip points emerge

The shift toward AI-native agents is widening the gap between low-level WebRTC infrastructure and high-level SDKs. While Daily.co dominates the 'time-to-market' segment, LiveKit’s open-source architecture and native Agents SDK provide a cheaper, more flexible escape hatch for teams outgrowing CPaaS margins. This tiered market forces CTOs to choose between Daily's ease of use and the long-term scalability of the LiveKit ecosystem as real-time audio/video usage spikes. Watch for whether Daily.co increases its participant limits or offers dedicated EU residency clusters to stem the mid-market migration to LiveKit Cloud.

The WebRTC and CPaaS landscape is undergoing significant pricing and technical shifts in 2026 as voice AI becomes a primary growth engine. Per withremote.ai (May 2026), Daily.co’s primary competitive advantage is its tightly integrated Pipecat framework, which orchestrates multimodal AI agents across OpenAI and Anthropic models, though it is often more expensive at scale compared to nascent competitors. LiveKit’s recent momentum is supported by its Series C funding, announced in early 2026, aimed at positioning the platform as the default 'voice-driven era' infrastructure, according to LiveKit’s company filings.

Simultaneously, alternative providers are aggressively targeting the WebRTC middle market through infrastructure partnerships. Per Telnyx (April 2026), a new 'LiveKit on Telnyx' offering claims to reduce speech-to-text (STT) and text-to-speech (TTS) costs by 50% by running inference directly on carrier-owned GPU infrastructure. This move specifically targets the latency and cost blowouts often seen in AI-heavy video applications.

Industry research from Grand View Research (July 2026) projects the global WebRTC market will grow at a 45.7% CAGR through 2030, reaching $81.1 billion. This expansion is driven by the 'webification' of real-time communication in telehealth and retail. However, per Mordor Intelligence (January 2026), established CPaaS giants like Twilio and Vonage are responding to specialized WebRTC competition by pivoting toward 'omnichannel orchestration,' such as Twilio’s Flex Conversations, to keep enterprise clients within their walled gardens.