Legal tech start‑ups such as Legora are packaging foundation models from OpenAI and Anthropic into industry‑specific “AI wrappers” that automate drafting, research and document review for law firms. Legora targets a $10bn valuation after seven straight quarters of 50‑plus percent ARR growth and acquisitions including Wexler, a London‑based litigation specialist. The wrapper model subsidises token costs via monthly subscriptions, making it cheaper than direct API use.

However, revenue could erode if large firms like Kirkland & Ellis, which is investing $500mn in proprietary AI, build their own models. Profitability remains uncertain, especially as Anthropic and OpenAI move into legal tech ahead of IPOs, hiring legal AI leaders to show real revenue. Legora’s expertise in law is its strength, but mastering the competitive “law of the jungle” will determine its fate.