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73% of AI startups are just prompt engineering

pub.towardsai.net

161–170 of 212 posts

Re: 73% of AI startups are just prompt engineering

#161

Earlier quoted context omitted.

I remember being told that the secret of good consultancy is knowing what to read on your way to the meeting

very true. and these days take a lot less effort than before getting llms to summarize shit which is one task they inarguably shine on

They make too many mistakes for me to rely on their summaries for consulting. Repeating one of those is a great way to embarrass yourself in front of a client and damage your reputation

Re: 73% of AI startups are just prompt engineering

#162
post #3

So? 73% of Saas startups are DB connectors & queries.

The difference is, if your company “moat” is a “prompt” on a commodity engine, there is no moat. Google even said they have no moat, when clearly the moat is people that trust them and not any particular piece of technology.

the orchestration layer is the moat, ask any LLM and they will give paragraphs explaining why this is...

Re: 73% of AI startups are just prompt engineering

#163
post #140

Why is this post published in November 2025 talking about GPT-4? I'm suspicious of their methodology: > Open DevTools (F12), go to the Network tab, and interact with their AI feature. If you see: api.openai.com, api.anthropic.com, api.cohere.ai You’re looking at a wrapper. They might have middleware, but the AI isn’t theirs. But... everyone knows that you shouldn't make requests directly to those hosts from your web…

Providers such as OpenAI have client keys so your client application can call the providers directly. Many developers prefer them as they save roundtrip costs and latency. https://platform.openai.com/docs/api-reference/realtime-sess...

Do those still only work for the voice APIs though?

I've been hoping they would extend that to other APIs, and I'd love to see the same kind of mechanism for other providers.

UPDATE: I dug I to this a bit more and as far as I can tell OpenAI are still the only major vendor with a consumer key mechanism and it still only works for their realtime voice APIs.

Re: 73% of AI startups are just prompt engineering

#165

> just prompt engineering This dismisses a lot of actual hard work. The scaffolding required to get SOTA performance is non-trivial! Eg how do you build representative evals and measure forward progress? Also, tool calling, caching, etc is beyond what folks normally call “prompt engineering”. If you think it’s trivial though - go build a startup and raise a seed round, the money is easy to come by if you can show res…

> Eg how do you build representative evals and measure forward progress? This assumes that those companies do evaluations. In my experience, seeing a huge amount of internal AI projects at my company (FAANG), there's not even 5% that have any sort of eval in place.

Yeah, I believe that lots of startups don’t have evals either, but as soon as you get paying customers you’re gonna need something to prevent accidentally regressing as you tune your scaffolding, swap in newer models, etc.

This is a big chasm that I could well believe a lot of founders fail to cross.

It’s really easy to build an impressive-looking tech demo, much harder to get and retain paying customers and continuously improve.

But! Plenty of companies are actually doing this hard work.

See for example this post: https://news.ycombinator.com/item?id=46025683

Re: 73% of AI startups are just prompt engineering

#166

For me, 2023 was an entire year of weekly demos that now looking back at were basically a "Look at this dank prompt I wrote" followed by thunderous applause from the audience (which was mostly, but not exclusively, upper management) Hell man, I attended a session at an AWS event last year that was entirely the presenter opening Claud and writing random prompts to help with AWS stuff... Like thanks dude... That was a…

I can't take anyone seriously who uses prompt engineering unironically. I see those emails come through at work and all I can do is roll my eyes and move on

Re: 73% of AI startups are just prompt engineering

#167

For me, 2023 was an entire year of weekly demos that now looking back at were basically a "Look at this dank prompt I wrote" followed by thunderous applause from the audience (which was mostly, but not exclusively, upper management) Hell man, I attended a session at an AWS event last year that was entirely the presenter opening Claud and writing random prompts to help with AWS stuff... Like thanks dude... That was a…

I can't take anyone seriously who uses prompt engineering unironically. I see those emails come through at work and all I can do is roll my eyes and move on

what level of seriousness does "context engineering" deserve?

Re: 73% of AI startups are just prompt engineering

#168

Earlier quoted context omitted.

It sounds like some of these companies call the OpenAI or Anthropic APIs directly from their frontend. Later, the author also mentions "response time patterns for every major AI API," so maybe there's some information about the backend leaking that way even if the API calls are bridged. But I'd like to know an actual answer to this, too, especially since large parts of this post read as if they were written by an LLM…

> It sounds like some of these companies call the OpenAI or Anthropic APIs directly from their frontend. Which would be a major security hole. And sure, lots of startups have major security holes, but not enough that he could come up with these BS statistics. I'm a little dismayed at how high up this has been voted given the data is guaranteed to be made up.

> > It sounds like some of these companies call the OpenAI or Anthropic APIs directly from their frontend.

> Which would be a major security hole.

An officially supported security hole

https://platform.openai.com/docs/api-reference/realtime-sess...

Re: 73% of AI startups are just prompt engineering

#169
post #146

For me, 2023 was an entire year of weekly demos that now looking back at were basically a "Look at this dank prompt I wrote" followed by thunderous applause from the audience (which was mostly, but not exclusively, upper management) Hell man, I attended a session at an AWS event last year that was entirely the presenter opening Claud and writing random prompts to help with AWS stuff... Like thanks dude... That was a…

Wait ... You mean teams are already building their own solutions to existing solutions? Software development will live on in eternity then.

They are just reselling OpenAI subscriptions at a markup. Surprise!

Re: 73% of AI startups are just prompt engineering

#170

> just prompt engineering This dismisses a lot of actual hard work. The scaffolding required to get SOTA performance is non-trivial! Eg how do you build representative evals and measure forward progress? Also, tool calling, caching, etc is beyond what folks normally call “prompt engineering”. If you think it’s trivial though - go build a startup and raise a seed round, the money is easy to come by if you can show res…

The money is easy to come by because wealthy investors, while they don't want to pay any more in taxes, are desperate to find possible returns in an economy that sucks outside of ballooning healthcare and the AI bubble... not because they need the money but because NUMBER MUST GO UP. And more so than even most VC markets, raising for an "AI" company is more about who you know than what results you can show. If anyone…

What’s your opinion on any of the plethora of unicorns in domain-specific AI, like Harvey? ($100m ARR from what I could find on a cursory search)

https://www.forbes.com/sites/iainmartin/2025/10/29/legal-ai-...

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