$9.75 billion spent on embedding engineers, Tomasz Tunguz notes

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07.07.2026

$9.75 billion spent on embedding engineers, Tomasz Tunguz notes — AI firms spend $9.75 billion deploying engineers

Tomasz Tunguz highlights that $9.75 billion was allocated over 12 months by five AI companies to forward-deployed engineering, a model where engineers are placed inside customer organizations to install and operate AI systems.

This forward-deployed engineering approach, once a signature of Palantir, has now become a standard across the industry, accounting for a quarter of Accenture's labor budget.

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Tunguz previously compared SAP’s scale in the data sector, noting the company’s 80% figure outpaces CrowdStrike and Shopify in growth and size here. He has also reported that Coinbase maintained stable costs by directing prompts to less expensive models while experiencing exponential growth in token usage here. These observations show ongoing industry attention to cost management and operational deployment.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.

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