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How Does the Model Context Protocol Work, and What It Kills for Startups

Startups September 05, 2026 02:01 PM
How Does the Model Context Protocol Work, and What It Kills for Startups

How Does the Model Context Protocol Work, and What It Kills for Startups

How does the Model Context Protocol actually work, and why should founders care? MCP standardizes how AI agents connect to outside tools, and two years after Anthropic open-sourced it, that standardization is quietly commoditizing the AI integration startups whose whole pitch was doing that wiring for you. Here's the client-host-server mechanics, the real adoption numbers, and where the actual moat moved.