Tech News
← Back to articles

73% of AI startups are just prompt engineering

read original related products more articles

I Reverse-Engineered 200 AI Startups. 146 Are Selling You Repackaged ChatGPT and Claude with New UI. Teja Kusireddy 11 min read · Nov 3, 2025 -- 88 Share

I monitored network traffic, decompiled code, and traced API calls for 200 funded AI startups. 73% are running third-party APIs with extra steps. OpenAI dominates, Claude is everywhere, and the gap between marketing and reality is staggering.

This story is part 2 of the AI Reality Trilogy, a three-part series on what AI is really doing to infrastructure, startups, and you.

Part 1 → We Spent $47,000 Running AI Agents in Production. Here’s What Nobody Tells You About A2A and MCP.

Part 3 → Coming soon: Stop Crying About AI Taking Your Job. You Were Already Replaceable.

Non-Medium members can read the full story free here: Friend Link — Unlocked

Last month, I went down a rabbit hole that started with a simple question and ended with me questioning everything I thought I knew about the AI startup ecosystem.

It was 2 AM. I was debugging a webhook integration when I noticed something odd. A company claiming to have proprietary deep learning infrastructure was making calls to OpenAI’s API every few seconds. The same company that just raised $4.3M by promising investors they’d built something fundamentally different.

That’s when I decided to find out how deep this goes.

The Methodology: How I Actually Did This