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Startups Now “Wrap” APIs: The Shift from Building to Composing

Software companies don’t really build software anymore.

They compose it.

Twenty years companies built almost everything ourselves: Infra, data systems, tooling. If it didn’t exist, let's rock - builder mode on.

Now ... well, you just call an API.

AWS normalized renting servers. Then came layers on top: payments, analytics, auth, observability, etc. Everything became "just use the vendor".

And now we have the layer of all - LLM wrappers.

Half the new startups are basically a UI on top of OpenAI or Anthropic. A prompt, a workflow, some polish. That’s it. And they’re growing fast.

AI lets you build everything yourself. I think that's the opposite. GPUs are expensive. Multi-tenancy wins. Centralized AI vendors get stronger, not weaker.

The vibe shift is clear:

Old default: build it. New default: buy it. Newest default: just wrap it.

This explains a lot: faster startups, thinner margins, fewer internal platform teams, and higher leverage for engineers sitting at the vendor layer.

Don’t build the app. Sell the API.

A man in a red jacket gestures negatively to "building a consumer app" and positively to "selling infra to the apps" on a yellow background.

Originally posted on X

PS: I'm pretty active on 𝕏 if you'd like to follow along

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