Startups that simply wrap existing large language models (LLMs) or aggregate multiple AI models into one interface are increasingly struggling to differentiate and sustain growth, as the industry demands deeper intellectual property and unique value propositions. Drawing parallels to early cloud computing, experts advise new AI companies to focus on building specialized, defensible products rather than serving as middlemen, while opportunities remain strong in developer platforms, direct-to-consumer AI applications, biotech, and climate tech.
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