What Tomasz Tunguz thinks about LLMs
Venture capitalist and founder of Theory Ventures, previously a partner at Redpoint. Writes a near-daily blog on startups, SaaS metrics, data and AI.
Tomasz Tunguz did not write this page.
We collected these quotes from things they published elsewhere, and every quote links to where it was said. They have no account here and have not endorsed this site. Quotes are word for word; the short line under each one is our own restatement, not their wording. Their own site. Is this you? Claim it or ask us to remove it. Or tell us what is wrong here.
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8 dated positions, 2026, in their own words. Our reading of what Tomasz Tunguz has said — not written or endorsed by them.
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Our readingThe AI stack functions as a coupled, chaotic system where changes in one layer affect the others.
Their wordsLike a double pendulum20, the four layers form a coupled system : simple in each part, yet complex, chaotic, & unpredictable in motion.
- 12 days earlier
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Their wordsOverall, they demonstrate that inference businesses can be quite healthy even at current prices & efficiencies.
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Their wordsThe economics of large scale inference suggest the business model is healthy at scale, & token factories benefit from more rungs to climb on the pricing ladder.
- 2 weeks earlier
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Our readingAI models have reached commodity status.
Their wordsAI models have reached commodity status as prices fall 41% while token usage surges 50%.
- 2 days earlier
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Their wordsAI inference is set to surpass the database market to become the most important market in software, reaching ~$350b by 2027.
↗Inference Is the Most Important Market in Softwaretomtunguz.com
- 12 days earlier
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Their wordsMost 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.
- 6 days earlier
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Their wordsRouting to a cheap model is only safe if you know which tasks it clears, & that knowledge comes from watching ten thousand versions of the same work.
↗The Harness Margin Opportunitytomtunguz.com 1st of 2 in this piece
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Their wordsMargins will not climb to 100%. As inference gets cheaper, buyers will ask more of their agents, shifting the equilibrium over time in response to competition.
↗The Harness Margin Opportunitytomtunguz.com 2nd of 2 in this piece