Like containerization, AI is a transformative technology where value may accrue to customers and users, not the creators of the core infrastructure. The biggest fortunes from containerization were made by companies like Nike and Apple that leveraged global supply chains, not by investors in the container companies themselves.

A fundamental shift is occurring where startups allocate limited budgets toward specialized AI models and developer tools, rather than defaulting to AWS for all infrastructure. This signals a de-bundling of the traditional cloud stack and a change in platform priorities.

To build a multi-billion dollar database company, you need two things: a new, widespread workload (like AI needing data) and a fundamentally new storage architecture that incumbents can't easily adopt. This framework helps identify truly disruptive infrastructure opportunities.

A logical data management layer acts as middleware, disintermediating business users from the underlying IT systems. This data abstraction allows business teams to access data and move quickly to meet market demands, while IT can modernize its infrastructure (e.g., migrating to the cloud) at its own pace without disrupting business consumption.

Despite a decade of industry focus on technologies like Kubernetes, the vast majority of software still runs on older platforms like Virtual Machines. Production technology has incredible inertia, staying in use for decades longer than people expect. This means infrastructure products must address the 'old' world, not just the new and hyped.

Unlike sticky cloud infrastructure (AWS, GCP), LLMs are easily interchangeable via APIs, leading to customer "promiscuity." This commoditizes the model layer and forces providers like OpenAI to build defensible moats at the application layer (e.g., ChatGPT) where they can own the end user.

To operate thousands of GPUs across multiple clouds and data centers, Fal found Kubernetes insufficient. They had to build their own proprietary stack, including a custom orchestration layer, distributed file system, and container runtimes to achieve the necessary performance and scale.

The middle layer of the AI stack (software infrastructure for data movement or frameworks) is a difficult place to build a company. Foundation models are incentivized to add more capabilities from below, leaving little room for defensible platforms in between applications.

The rise of public cloud was driven by a business model innovation as much as a technological one. The core battle was between owning infrastructure (capex) and renting it (opex) with fractional consumption. This shift in how customers consume and pay for services was the key disruption.