Can AI’s Middlemen Defend Their Valuations?

Hello,

The AI infrastructure boom is creating a crowded new middle layer.

Startups like Baseten, Fireworks AI, Together AI and Modal help developers run and customize AI models without managing the underlying GPU infrastructure themselves. That position has become increasingly valuable as more companies move from testing AI to putting models into production.

But fast growth has brought a harder question: how durable is this business? Many inference providers still rely on rented GPU capacity, face pressure from larger cloud providers and compete in a market where prices can fall quickly.

We asked Deep Research to examine whether these companies can turn surging demand into lasting, high-margin businesses—or risk being squeezed between developers, model makers, and the cloud giants that control compute.

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