TLDR IT · ANALYSIS & OPINIONS

INFERENCE IS THE MOST IMPORTANT MARKET IN SOFTWARE

tomtunguz.com2 min read

Summary from the TLDR IT newsletter

AI inference could become a larger software market than databases, with spending projected to reach $350 billion by 2027. Rising inference costs will pressure software companies' gross margins, forcing them to improve efficiency through smaller models, better harnesses, and smarter routing techniques.