"It's just a wrapper around OpenAI." This has become the ultimate insult in tech twitter circles. It implies the product has no moat, no IP, and no value. It is also completely wrong.
The Model is the Engine, You Build the Car
Saying a SaaS is "just a wrapper" is like saying Uber is "just a wrapper around Google Maps" or Netflix is "just a wrapper around AWS S3."
Raw LLMs (ChatGPT, Gemini) are general-purpose engines. They are powerful but unrefined. They require prompt engineering, context, and formatting to be useful.
Raw Model
You have to copy-paste context. You have to write a 3-paragraph prompt to get the right tone. You have to format the output manually.
The Wrapper
One-click workflow. Connects to your Gmail. Pre-loaded with 50 proven legal prompts. Exports directly to PDF.
The Moat is the Workflow
Successful AI wrappers don't compete on the intelligence of the model (which is a commodity). They compete on:
Vertical Specificity
A "Contract Review AI" knows things about jurisdiction and liability that generic ChatGPT doesn't prioritize without immense prompting.
UX & Integration
The value is often in the boring stuff: User management, PDF parsing, Slack notifications, and team collaboration features.
Proprietary Data
If you wrap GPT-4 but inject your own proprietary database of 10,000 successful sales emails into the context window (RAG), you have a moat.
Speed to Revenue
Building a wrapper is the fastest way to validate a problem. You can build a Micro-SaaS "wrapper" in 4 weeks for under $10k. If it solves a burning pain for a niche audience (e.g., "AI for Dentists"), they do not care what model is under the hood. They just want the pain to stop.
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