In today’s rapidly evolving AI landscape, many founders and observers find themselves preoccupied with the idea that successful startups must build foundational technology from scratch. Nowhere is this narrative more prevalent than among those launching so-called “LLM wrappers” — companies whose core offering builds on top of large language models (LLMs) like GPT or Claude. There’s a temptation to dismiss these businesses as lacking innovation or technical depth. But this perspective misses a deeper truth: customers don’t care if you’re “just a wrapper” — they care if you solve their problem1.
The AI Technology “Wrapper” Economy: Value is in Use, Not in Invention
Every successful company “wraps” something. Uber is a $190B behemoth, yet its platform is essentially a wrapper around taxis. Airbnb, worth $87B, is a marketplace wrapping around the concept of hotels. The real value in these businesses was not inventing taxis or hotels, but creating seamless, scalable solutions for transportation and lodging, respectively1.
The same dynamic plays out in AI. Companies like Harvey (legal AI, $5B valuation, $75M ARR), Perplexity (AI-powered search, $18B valuation, $150M monthly revenue run-rate), and Cursor (developer tools, $10B+ valuation) are thriving as “wrappers” around LLMs1. What they have in common is a relentless focus on solving real, vertical-specific problems — not building everything from scratch.
Infrastructure vs. Solutions: Why Wrappers Are Necessary
The foundation model providers — OpenAI, Anthropic, Google — are infrastructure companies. Their platforms are general-purpose and cannot possibly address every vertical, use case, or workflow. They need solution-focused wrappers to take their technology to market and unlock its full potential for specific customer needs1.
Misconceptions and Moats: Are Wrappers Sustainable?
Skeptics argue that LLM wrappers are vulnerable: what if the foundational AI providers simply build the feature themselves? This risk is real, but no different from risks faced by Uber and Airbnb during their ascents. The trick is to build distribution moats and meaningful product differentiation1.
Companies like Uber navigated local regulations, assembled vast driver networks, and earned user trust — advantages not easily replicated by infrastructure players. In AI, the same holds true: wrappers that go deep on vertical problems and deliver incremental improvements that matter to users can win on distribution, brand, and execution1.
That said, low-effort wrappers — those that do little more than call an API with a prompt — are likely to be crushed as infrastructure providers evolve. Mission-driven wrappers, which redefine workflows or address complex, nuanced pain points, have staying power.
Focus on Value, Not Vanity
Customers pay for outcomes, not for the technical purity of your solution. Uber users wanted reliable, affordable rides, not a revolution in vehicle engineering. AI product users want tools that make their workflow smarter, faster, or more intuitive — with little interest in the underlying tech stack1.
The Future: Will the “Wrapper” Trend Last?
It is true that barriers to entry in AI application-layer businesses appear lower today than in previous platform shifts. As LLM infrastructure rapidly improves and consolidates, not every “wrapper” will survive. The market may see a “pets.com vs. Amazon” winnowing: only those who solve real needs, build loyal user bases, and forge strong distribution will outlast the hype cycle1.
Conclusion
The “wrapper” critique misses the point. Innovative solution companies wrap technology, not because they lack ambition, but because that’s where value is created. As history shows, the future belongs to those obsessed with solving customer problems — not to those worried about the thickness of their technological layer.
Feel free to follow us on Twitter and don’t forget to join our 100k+ ML SubReddit and Subscribe to our Newsletter.
FAQ: Can Marktechpost help me to promote my AI Product and position it in front of AI Devs and Data Engineers?
Ans: Yes, Marktechpost can help promote your AI product by publishing sponsored articles, case studies, or product features, targeting a global audience of AI developers and data engineers. The MTP platform is widely read by technical professionals, increasing your product’s visibility and positioning within the AI community. [SET UP A CALL]
Asif Razzaq is the CEO of Marktechpost Media Inc.. As a visionary entrepreneur and engineer, Asif is committed to harnessing the potential of Artificial Intelligence for social good. His most recent endeavor is the launch of an Artificial Intelligence Media Platform, Marktechpost, which stands out for its in-depth coverage of machine learning and deep learning news that is both technically sound and easily understandable by a wide audience. The platform boasts of over 2 million monthly views, illustrating its popularity among audiences.
