HACKER Q&A
📣 WestCoastJustin

In the AI boom, how are you mitigating third-party API dependence?


I assume no one is since there is not a viable alternative. But, in the past, there have been threads around concerns of building businesses on third-party APIs. The core idea was, what happens if API access is suddenly cut off or degrades? What if the third-party changes their pricing or terms of service without sufficient warning?

We are clearly in an AI gold rush and there is a surge of startups building their operations heavily reliant on third-party APIs (mainly OpenAI). It feels like the earlier concerns have gone out the window, probably due to the urgency to be first. I totally get it and have been working on my personal projects too, just wondering what happens if access it shut off.

I guess my question is, how are you mitigating these risks today? I have been wondering and I guess curious about strategies, experiences, and any advice. Maybe we'll see some competition from Google if they open up their APIs.


  👤 matt_s Accepted Answer ✓
If you are talking about technical dependence, implement an internal abstraction over those API's so you can change vendors without a lot of technical churn. Make it modular.

If a business starting up is 90-100% dependent on a single supplier for a key part of their product and you are one of hundreds of their customers, then you can't mitigate that. Its just not a good business model. Maybe the outcome is to exit first in that scenario, essentially passing the dependence onto someone else while you walk away with bags of money.

So from a business perspective: don't put all your gold rush eggs in one basket? Sell shovels?