Enterprises Beware: Agent-Washing Clouds the Future of AI
Vendors mislabel copilots as agents, raising regulatory and operational risks for firms chasing the promise of agentic AI.
- Published on August 20, 2025
- In AI Startups
AI Startups Depend on Costly APIs of Companies Burning Billions
‘The question is not whether AI is powerful. It is whether it’s profitable’.
- By Mohit Pandey
The AI industry is stuck in a paradox. On one hand, it is hailed as the most important technology shift of our time. On the other, most companies calling themselves AI startups are little more than thin wrappers around APIs built by OpenAI, Anthropic, or Google.
Strip away the hype and the reality looks fragile.
Alex Issakova, CEO of Huckr AI, said it bluntly. “80% of AI startups depend on APIs from companies burning billions. How long can that last?”
That dependency is the core weakness. When OpenAI raises prices, when Anthropic cuts back credits, or when Google shifts its model tiers, entire businesses get shaken. As Gergely Orosz, best known for his newsletter The Pragmatic Engineer, noted, many AI startups are “boasting about ARR milestones” that don’t add up o
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Mohit Pandey
Mohit writes about AI in simple, explainable, and often funny words. He's especially passionate about chatting with those building AI for Bharat, with the occasional detour into AGI.
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