THE CRUMBLING WORKFLOW MOAT: AGGREGATION THEORY'S FINAL CHAPTER

Summary from the TLDR Founders newsletter

LLMs absorb the interface layer of vertical software, collapsing workflow-based moats and turning products into interchangeable APIs. When users interact only through chat, suppliers lose brand, UX, and switching costs, forcing competition on data quality, coverage, and price. This completes Aggregation Theory by eliminating interface defensibility, triggering valuation compression for software companies without truly proprietary data.