AI inference to hit ~$350B by 2027, surpassing databases as software's biggest market
demian_ai · x · 2026-10-09
Theory Ventures' Tomasz Tunguz argues AI inference will overtake the database market as software's most important category: $25B in 2025, $130B this year, $350B by 2027 vs. $190B for databases. He outlines three unit-economics shifts — usage fees dwarfing seat licenses, gross margins compressing below the classic 72%, and BYOK forcing revenue-for-margin trades — concluding every app is becoming an inference reseller.
Related event: AI Inference to Become Software's Largest Market by 2027 at $350B(2 posts)→
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