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Infrastructure software outperforms application software in AI

The bull case argued for infrastructure software is that it represents the most immediate and correct way to express AI winners, outperforming application software.

The argument

The guest argued that application software names like Salesforce and Adobe are facing a more challenging environment, while infrastructure software names are benefiting directly from the scaffolding and visibility needed for complex AI systems.

The thesis, stress-tested
✓ What validates it
  • Accelerated enterprise spending on IT architecture monitoring tools
  • Parabolic growth in agentic internet traffic over the next 6 to 12 months
▸ Risks discussed
  • Rapidly changing technological frontier making current models obsolete
  • Point of failure risks in complex agentic AI systems
Hear it yourself
"But the infrastructure names continue to get bid up, and that's functionally because it's the most immediate and we think the most correct way to express the you know, veritable AI winners and the software stock."
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