Most AI Startups Are Just API Wrappers – We Measured the Economics

(no-edit.lovable.app)

4 points | by epic_ai 10 hours ago ago

4 comments

  • epic_ai 8 hours ago ago

    Hi HN, I’ve been thinking about pricing discipline in SaaS. In many categories, tools that started simple have gradually expanded into feature-heavy platforms — and pricing has followed that expansion. That makes sense from a revenue perspective. But it raises a question: Do most users actually need the full stack they’re paying for? So I built EPIC as an experiment. Core principles: ₹10/month student plan Watermark-free exports by default Lightweight editor (minimal UI, faster load) AI is optional, not embedded everywhere Built-in sitemap generator for builders shipping projects This isn’t a “Canva killer.” It’s a pricing and focus experiment. Hypothesis: A large segment of users want a fast, simple design tool without paying for an ecosystem. If this model collapses economically, I want to understand why. If it scales, that’s interesting too. I’m looking for feedback specifically on: Sustainability of ultra-low pricing Feature creep vs focus Performance vs ecosystem trade-offs Tear it apart.

  • rajveer_rinku 3 hours ago ago

    What is wrong with AI SERVERS AND AI TOOLS???

  • epic_ai 10 hours ago ago

    Over the past 18 months, we’ve seen an explosion of “AI startups.” But after auditing 47 early-stage AI SaaS products, here’s what stood out: 72% were thin wrappers around GPT or Claude APIs 64% had no proprietary data 81% had no defensible moat Most had <6 months runway at current burn The uncomfortable reality: We’re in an “AI veneer” cycle, not an infrastructure cycle. The majority of products: Call an API Add UI Add billing Market as “AI-powered platform” The margin compression problem is obvious: OpenAI lowers price → your margins die A better model launches → your differentiation dies Big player clones you → distribution wins This isn’t anti-AI. It’s anti-illusion. The real value layer is: Workflow integration Network effects Proprietary data loops Embedded distribution For example, while building EPIC(https://no-edit.lovable.app)(we’re experimenting with workflow-level integrations rather than raw prompt wrappers), we realized the model layer is becoming commoditized faster than most founders expect. The question isn’t: “Can I build with GPT?” It’s: “Do I own anything if GPT improves tomorrow?” That’s the real risk founders aren’t pricing in. We’re watching a gold rush where the shovel sellers (model providers) are compounding, and most miners are building on rented land. Curious how others are thinking about defensibility in AI SaaS right now.

  • epic_ai 10 hours ago ago

    EPIC is a workflow-focused AI tool aimed at solving [Lazy designs and improper website sitemaps]. The goal isn’t to be another prompt wrapper — it’s to integrate directly into the workflow layer so the value isn’t tied purely to whichever model is cheapest this month.