The Modern AI Stack: Design Principles for the Future of Enterprise AI Architectures - Menlo Ventures

The future of the modern AI stack is being decided now. More than ever, machines are capable of reasoning, creation, and creativity, and these new capabilities are driving enterprises to reconstruct their tech stacks. While the early days of this AI transformation felt like the Wild West, today, builders are converging around infrastructure, tooling, and approach. (We first documented this transition in Menlo’s State of Enterprise AI report last November.) Today, we’re excited to share our thesis for how AI development will evolve, as well as the core infrastructure components that will combine to create the modern AI stack—the new runtime architecture that will drive AI applications for the coming decade. In 2023, enterprises spent over $1.1 billion on the modern AI stack—making it the largest new market in generative AI and a massive opportunity for startups. At Menlo Ventures, we define the key layers of the modern AI stack as: Both the market structure and technology that define th

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• Eddie Sun