The generative AI boom created a flood of startups, but Google’s Darren Mowry believes that two popular models — LLM wrappers and AI aggregators are now cautionary tales. For the uninitiated, Wrappers are simply layer a user interface over existing models like GPT or Gemini, are no longer seen as sustainable. “If you’re really just counting on the back end model to do all the work…the industry doesn’t have a lot of patience for that anymore,” Mowry said. Aggregators, which combine multiple models into one interface, face similar challenges as users demand proprietary IP rather than orchestration layers.

Lessons from the cloud era

As reported by TechCrunch, Mowry compared today’s AI landscape to the early days of cloud computing. In the late 2000s, startups that resold AWS infrastructure were quickly squeezed out once Amazon built its own enterprise tools. Only those which offered real services such as security or DevOps consulting survived the market. He feels that AI aggregators will face the same pressure as model providers expand into enterprise features themselves.

What will survive in the AI era

Mowry feels that the startups that build deep moats and offer differentiated products are moe likely to thrive. Giving example, Mowry pointed out vertical-focused wrappers like Cursor, a coding assistant, and Harvey AI, a legal tool, as examples of sustainable models. He also highlighted developer platforms such as Replit and Lovable, which had record-breaking traction in 2025.Looking ahead, Mowry is bullish on direct-to-consumer AI tools, citing Google’s video generator Veo as an example of how students and creators can bring stories to life. Beyond AI, he sees strong momentum in biotech and climate tech, industries where massive datasets can be leveraged to create real value.