AI startups built on big models won't last: Google VP
Darren Mowry, Google's VP of Global Startups, thinks businesses built just on top of big AI models—like LLM wrappers and aggregators—might not last.
On TechCrunch's Equity podcast, he pointed out that as companies like OpenAI and Google add more features themselves, these middlemen could see profits shrink.
"If you're really just counting on the back-end model to do all the work...the industry doesn't have a lot of patience for that anymore," he said.
Mowry's warning for AI startups
Mowry's advice? Avoid building startups that only repackage or aggregate AI tools.
He compared today's LLM wrappers to early AWS resellers who got squeezed out when Amazon launched its own solutions.
Only companies with something truly unique—like Cursor (coding) or Harvey AI (legal)—have managed to stick around.