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Contrary to the long-standing fear that any AI product built atop a model would be a disposable 'wrapper' eventually swallowed by the model itself, the wrapper is turning out to be where the value actually lies.

The author points to an irony in AI's evolution: products once dismissed as thin 'wrappers' around models may now be the layer that actually holds value, as model-layer margins compress. ✦ AI generated

Alex Kantrowitz · Big Technology · 2026-07-17 · original ↗

There is a certain irony to what's happening in AI today. For a long time, there was a question of whether any product built on top of an AI model could be valuable or would simply be a 'wrapper' that would inevitably be swallowed by the model itself. Now, it turns out, the wrapper may be the value layer.

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