Tomasz Tunguz · 5 October 2026 · Investment Thesis

Inference Is the Most Important Market in Software

Tomasz Tunguz, MD @ Theory

AI inference spending will surpass databases by 2027 to become software's largest market, fundamentally reshaping unit economics: usage consumption will dwarf platform fees, gross margins will compress below SaaS norms, and infrastructure costs will dominate COGS.

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Topics: AI Infrastructure · Enterprise Software

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