Home Speakers Tomasz Tunguz Quote AI customer retention sits between mobile games and social networks. Frontier models keep the crown for about 41 days, and the price of a given level of intelligence falls roughly 10x per year, giving buyers more leverage every cycle.
Words found on the source page on Nov 6, 2026.
More from Tomasz Tunguz Blog Thinking in Systems, Shipping in Loops Sep 24, 2026
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But the right tail of the market is thinner than almost anyone forecast. Blog The Most Important Market in AI is the Middle Sep 23, 2026
Demand for intelligence is not a pyramid with a small, wealthy peak paying for everything beneath it. Blog The Most Important Market in AI is the Middle Sep 23, 2026
Most business AI use is the messy middle: multi-step workflows that need a smart enough model at a price a company can afford. It is the most important part of the market today, & it is where the competition is fiercest. Blog AI Comes for the If Statement Sep 21, 2026
If this is the first of many primitives specialized for production, then harnesses are about to capture a lot more margin. Blog AI Comes for the If Statement Sep 21, 2026
They also highlight the bifurcating economics of AI: state of the art models for discovery & optimized models for production. We use the largest frontier models to train new models, & the most capable models to architect systems. But once a system is engineered & hardened, running it thousands or millions of times through a workflow benefits from narrower AI.
On the same topics Blog Frontier Overhangs Sep 21, 2026
A world with sufficient compute is one where intelligence is a commodity, and in commodity markets margin comes from a superior cost structure, which I would expect the leading model providers to have, in part because they have a meaningful lead in scaling and can apply superior AI to their infrastructure. Blog Frontier Overhangs Sep 21, 2026
Pure capability no longer translates directly into a moat. Blog AI politics & the future of growth #602 Sep 19, 2026
We have to hold in our heads that most Americans appear to loathe AI, but businesses and consumers seem to like it enough that Anthropic is well on its way to $100bn in annualised revenue this year. And despite being on track to be the fastest-growing company ever, Anthropic’s leadership believes they might kill all their customers. Essay AI for All Americans Sep 16, 2026
AI will sort the world the same way: those who harness it effectively will gain cultural and economic power, and those who don’t will become subject to forces they do not control. Essay AI for All Americans Sep 16, 2026
As AI technology accelerates development and economic precarity increases, the decisions we make in the next 36 months are crucial; we are setting a course that will determine the winners and losers, both domestically and internationally. Blog What would Adam Smith make of AI? Sep 15, 2026
I reckoned he’d love the technology as a productivity tool; he’d be skeptical about companies working together on any issue; and he’d be concerned about giving moral agency to machines. About this quote 
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