The generative AI boom minted a startup a minute. But as the dust starts to settle, two once-hot business models are looking more like cautionary tales: LLM wrappers and AI aggregators.
Darren Mowry, who leads Google’s global startup organization across Cloud, DeepMind, and Alphabet, says startups with these hooks have their “check engine light” on.
LLM wrappers are essentially startups that wrap existing large language models, like Claude, GPT, or Gemini, with a product or UX layer to solve a specific problem. An example would be a startup that uses AI to helps students study.
“If you’re really just counting on the back end model to do all the work and you’re almost white-labeling that model, the industry doesn’t have a lot of patience for that anymore,” Mowry said on this week’s episode of Equity.
Wrapping “very thin intellectual property wrapped around Gemini or GPT-5” signals you’re not differentiating yourself, Mowry says.
“You’ve got to have deep, wide moats that are either horizontally differentiated or something really specific to a vertical market” for a startup to “progress and grow,” he said. Examples of the deep moat LLM wrapper type include Cursor, a GPT-powered coding assistant, or Harvey AI, a legal AI assistant.
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In other words, startups can no longer expect to slap a UI on top of a GPT and get traction on their product, like they could, perhaps, in mid-2024 when OpenAI launched its ChatGPT store. The challenge now is to build sustainable product value.
AI aggregators are a subset of wrappers — they’re startups that aggregate multiple LLMs into one interface or API layer to route queries across models and give users access to multiple models. These companies typically provide an orchestration layer that includes monitoring, governance, or eval tooling. Think: AI search startup Perplexity or developer platform OpenRouter, which provides access to multiple AI models via a single API.
While many of these platforms have gained ground, Mowry’s words are clear to incoming startups: “Stay out of the aggregator business.”
Generally speaking, aggregators aren’t seeing much growth or progression these days because, he says, users want “some intellectual property built in” to ensure they’re routed to the right model at the right time based on their needs — not because of behind-the-scenes compute or access constraints.
Mowry has been in the cloud game for decades, cutting his teeth at AWS and Microsoft before setting up shop at Google Cloud, and he’s seen how this plays out. He said the situation today mirrors the early days of cloud computing in the late 2000s/early 2010s as Amazon’s cloud business started taking off.
At that time, a crop of startups sprang up to resell AWS infrastructure, marketing themselves as easier entry points that provided tooling, billing consolidation, and support. But when Amazon built its own enterprise tools and customers learned to manage cloud services directly, most of those startups were squeezed out. The only survivors were the ones who added real services, like security, migration, or DevOps consulting.
AI aggregators today face similar margin pressure as model providers expand into enterprise features themselves, potentially sidelining middlemen.
For his part, Mowry is bullish on vibe coding and developer platforms, which had a record-breaking year in 2025 with startups like Replit, Lovable, and Cursor (all Google Cloud customers, per Mowry) attracting major investment and customer traction.
Mowry also expects strong growth in direct-to-consumer tech, in companies that put some of these powerful AI tools into the hands of customers. He pointed to the opportunity for film and TV students to use Google’s AI video generator Veo to bring stories to life.
Beyond AI, Mowry also thinks biotech and climate tech are having a moment — both in terms of venture investment going into the two industries and the “incredible amounts of data” startups can access to create real value “in ways we would never have been able to before.”
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![Amazon Is Sticking With ‘Rings of Power’ to the End
There’s many uncertainties in this world, but apparently the future of Prime Video’s Lord of the Rings: The Rings of Power may not be one of them. According to a source speaking to The Ankler’s Lesley Goldberg, the show’s considered a “magical halo” by Amazon CEO Jeff Bezos. As such, it’s “proteced for its run” and likely to finish out the five-season arc Amazon pitched back when it first secured the rights. Getting those rights and making the show has been pretty pricey for the company, and the first two seasons had a two-year release gap. At time of writing, the show’s third season doesn’t have a firm date beyond “sometime in 2026,” and some have generally wondered how much more life Rings of Power had left in it. Goldberg’s report also mentions a tradeoff to this five-season plan: for Rings of Power to live on, a spinoff that’d been planned for it has gotten axed. Major Prime Video shows like The Boys and Invincible have become small franchises unto themselves, and it makes sense the streamer would want to repeat that for its remaining big fantasy series. While Amazon may not get to build on Middle-earth after the show ends, Warner Bros. is determined to keep the Lord of the Rings train going with two new films: a Gollum prequel, and an interquel that also reunites the Hobbits after the events of Return of the King. [via IGN] Want more io9 news? Check out when to expect the latest Marvel, Star Wars, and Star Trek releases, what’s next for the DC Universe on film and TV, and everything you need to know about the future of Doctor Who. #Amazon #Sticking #Rings #PowerJ.R.R. Tolkien,Lord of the Rings,Rings of Power Amazon Is Sticking With ‘Rings of Power’ to the End
There’s many uncertainties in this world, but apparently the future of Prime Video’s Lord of the Rings: The Rings of Power may not be one of them. According to a source speaking to The Ankler’s Lesley Goldberg, the show’s considered a “magical halo” by Amazon CEO Jeff Bezos. As such, it’s “proteced for its run” and likely to finish out the five-season arc Amazon pitched back when it first secured the rights. Getting those rights and making the show has been pretty pricey for the company, and the first two seasons had a two-year release gap. At time of writing, the show’s third season doesn’t have a firm date beyond “sometime in 2026,” and some have generally wondered how much more life Rings of Power had left in it. Goldberg’s report also mentions a tradeoff to this five-season plan: for Rings of Power to live on, a spinoff that’d been planned for it has gotten axed. Major Prime Video shows like The Boys and Invincible have become small franchises unto themselves, and it makes sense the streamer would want to repeat that for its remaining big fantasy series. While Amazon may not get to build on Middle-earth after the show ends, Warner Bros. is determined to keep the Lord of the Rings train going with two new films: a Gollum prequel, and an interquel that also reunites the Hobbits after the events of Return of the King. [via IGN] Want more io9 news? Check out when to expect the latest Marvel, Star Wars, and Star Trek releases, what’s next for the DC Universe on film and TV, and everything you need to know about the future of Doctor Who. #Amazon #Sticking #Rings #PowerJ.R.R. Tolkien,Lord of the Rings,Rings of Power](https://gizmodo.com/app/uploads/2026/04/lotr-rings-of-power-hed-1280x853.jpg)
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