@andrewchen · Andrew Chen
articleinsightRevenge of the GPT Wrappers: Defensibility in a world of commoditized AI models
4 February 2025Growth
Source excerpt
About @andrewchenWhy network effects and distribution will be king, once more
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Apollo layer
What a founder can learn
Founder takeaway
As AI models become commoditized, defensibility shifts away from model access and toward advantages in distribution and network effects. Build the company around how it repeatedly reaches users and becomes more valuable as participation grows—not merely around wrapping a model.
Why it matters
A product differentiated mainly by its underlying model may lose its edge as comparable capabilities become widely available. Durable customer acquisition and participation-driven value can create advantages that persist beyond changes in the model layer.
Put it to work
Ask: If every competitor had access to the same AI models tomorrow, what specific distribution advantage or network effect would still make customers choose us?
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