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Foundation models are becoming commoditized substitutes, creating a high-value opportunity for application-layer companies that orchestrate multiple models. These apps provide the necessary context, UI, and workflow integration that raw models lack.

Impact: Startups should focus on building orchestration layers and specialized applications rather than competing on model performance, capturing value through user experience and integration.

— from SaaS Resilience and AI Application Layer Strategy · a16z Podcast· Feb 12, 2026