AI spend pulled both ways: cheap models cut bills while video generation drives them up
c_valenzuelab · x · 2026-10-08
Clement Farabeau (cvalenzuelab) quote-RTs Ramp's Oct 2026 SaaS AI spend report plus a take on video/world models.
- Downward pressure: cheaper new models are cutting AI spend; routers keep gaining, and a model called Jev captured a full percentage point of market adoption within a month — unheard-of growth.
- Upward push: heavier use of expensive image and video generation models like Higgsfield and Runway will drive spend back up.
- The retweeted view: every step-change in model or harness capability drives a step-change in adoption, unlocking latent demand and second-order effects across industries. Video and world models are still in the earliest innings — end-to-end ad generation only emerged this year, and the future will be stranger, more interactive, and real-time.
Related event: Ramp Data Shows AI Spending Pulled in Two Directions(3 posts)→
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