Source: Tomasz Tunguz
Tunguz maps where profit pools across the AI supply chain—from power generation through chips, cloud infrastructure, and applications—using public company financials to show which layer extracts the most value. As AI infrastructure costs remain astronomical, companies building applications face margin compression unless they can differentiate enough to command premium pricing or achieve unmatched scale. The framework cuts through claims about "AI companies" to reveal which businesses are genuinely positioned as durable winners versus those simply renting expensive compute.