What is MCP?
MCP
Model Context Protocol (MCP) is an open standard for connecting AI applications to external data sources and tools. The term is used in the context of integrating services with large language models (LLMs), with subsequent discussions highlighting scaling challenges, integration difficulties, and practical implementations.
How it developed
- Apr 2025 - Bill Gurley noted that MCP is an acronym people are starting to use for representing a service.
- Mar 2026 - Karan Vaidya stated that giving 1,000 MCPs to an LLM results in hitting 1 million context windows, implying attention is not free.
- May 2026 - Walden Yan reported that to get the integration right, they often had to build their own ad hoc solutions.
- Jun 2026 - Devvret Rishi said that people were connecting cloud codes to custom MCPs, and connecting via MCP servers to those not on that platform.
- Jun 2026 - Bryant Chou stated that a CLI with skills would be the way to go, and an MCP would be good for more constrained use cases.
- Jul 2026 - Seema Amble noted that nobody wants to be put in a corner with a limited role like storing expense report SQL, piped through another tool, as that is not a growth opportunity.
- Jul 2026 - Jason Lemkin described a scenario where Claude on Opus talks to Replet on Sonnet for a big feature, and Replet brings in a sub-agent called the architect, which runs on codecs on OpenAI.
- Jul 2026 - Jason Lemkin said that usage and productivity had probably quadrupled in the last two weeks because of managing cloud into MCP into Replet.
In the evidence
Every line below is attributed to a named speaker.
Seema Amble on why enterprise software vendors will fight agent middleware commoditization: being reduced to a data store is a decaying business, not a growing one.
“Nobody wants to just be put in a corner and said your job is to just store the this SQL format for expense reports and do nothing more and then we're going to use you only for that and then by the way we're we're piping you through to some other tool to analyze expense reports because that's a that's not a growing business that's a decaying business.”Seema Amble · 7 Jul 2026
Replit, used as an autonomous coding agent that spawns sub-agents (including one on OpenAI Codex) for complex tasks and collaborates with Claude via MCP without direct human orchestration.
“When Claude on Opus talks to Replet on sonnet if it's a big feature, Replet brings in a sub agent called the architect and the architect it turns out runs on codecs on OpenAI.”Jason Lemkin · 17 Jul 2026
Internal MCPs act as a company's knowledge base and holy grail, and the most common AI security mistake is accidentally bridging them to personal or external MCPs, creating uncontrolled data exposure.
“The connection of internal MCPs that are kind of like the holy grail of the of the company, the repository, their knowledge base connected, sometimes, most cases, by mistake with either personal MCPs.”Nati Hazut · 19 Aug 2026
MCP integrations are not sufficient for production background agent deployments, forcing teams to build custom ad hoc integration layers instead.
“To actually get the integration right and the get the right experience often times we found that we had to go build our own ad hoc things.”Walden Yan · 28 May 2026
Nati Hazut on advanced teams replacing SIEM triage with AI-orchestrated incident response via MCP.
“The advanced customers, they're no longer consuming those alerts directly into their seam. Maybe they will do it for auditing, but how they're actually monitoring and doing the triage and the respond is through actually connecting our system with MCP along with other systems.”Nati Hazut · 19 Aug 2026
In enterprise deployments, the MCPs actually connected to Claude Code were a superset of those formally approved, revealing an MCP sprawl problem analogous to shadow IT.
“Meaning that people were connecting cloud codes to custom MCPs. And you know, connecting it via like MCP servers to the ones that maybe weren't on that.”Devvret Rishi · 16 Jun 2026
Scaling context windows does not solve the tool-overload problem for agents because attention is not free, meaning smart tool selection remains essential regardless of window size.
“If you give 1,000 MCPs to LLM it's obvious like we are hitting like 1 million context windows. Maybe in some time it will increase to five or whatever, but attention is definitely not free.”Karan Vaidya · 22 Mar 2026
MCP (Model Context Protocol), originated by Anthropic, is emerging as a standard for representing services to AI agents and worth tracking as potential infrastructure for the agent economy.
“There's this acronym people are starting to use, MCP, that is a way for you to represent your service.”Bill Gurley · 4 Apr 2025
Karan Vaidya on the cost of flooding an LLM with tools.
“If you give 1,000 MCPs to LLM it's obvious like we are hitting like 1 million context windows. Maybe in some time it will increase to five or whatever, but attention is definitely not free.”Karan Vaidya · 22 Mar 2026
Bold Security, an endpoint-based DLP and agent exfiltration detection vendor, is integrating via MCP to let AI orchestrate incident response, and claims a major resource efficiency advantage over legacy DLP tools.
“The advanced customers, they're no longer consuming those alerts directly into their seam. Maybe they will do it for auditing, but how they're actually monitoring and doing the triage and the respond is through actually connecting our system with MCP along with other systems.”Nati Hazut · 19 Aug 2026