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The tech scene loves a good shortcut. Right now, that shortcut is the "AI Wrapper Business"—a glossy user interface layered over a powerful, off-the-shelf Large Language Model (LLM). It feels like genius: outsource the hard part (building the model) and focus on the wrapper (distribution and design). Low overhead, high potential. What could possibly go wrong? If you want to build a business that provides enduring value and doesn't rely on continuously hiking the price, read t

The excitement around launching an AI-powered product is infectious. The marketing promise—a powerful brain, low maintenance, and negligible operational cost—sells itself. You look at the API pricing for the latest GPT-4o mini or a similar model, see the rate for a million tokens, and think: "We've got margin for days." But that's an illusion. Let me explain.