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Tomasz Tunguz quote, Sep 23, 2026

General Partner, Theory Ventures · Sep 23, 2026 · Post, The Most Important Market in AI is the Middle

But the right tail of the market is thinner than almost anyone forecast.

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Words found on the source page on Sep 25, 2026.

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Demand for intelligence is not a pyramid with a small, wealthy peak paying for everything beneath it.Sep 23, 2026· Post
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.Sep 23, 2026· Post
If this is the first of many primitives specialized for production, then harnesses are about to capture a lot more margin.Sep 21, 2026· Post
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.Sep 21, 2026· Post
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.Jul 13, 2026· Post

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About this quote
Said by
Tomasz Tunguz, General Partner, Theory Ventures
Where
The Most Important Market in AI is the Middle
Topics
Economics
Company
Theory Ventures
Source
tomtunguz.com/the-most-important-market-in-ai-is-the-middle/

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