Piper Sandler identifies Elastic, GitLab, MongoDB, Snowflake, and Atlassian as key players cutting AI deployment expenses for enterprises.
Piper Sandler highlighted five infrastructure software companies that can lower AI token costs, a major concern for chief information officers. The firms—Elastic, GitLab, MongoDB, Snowflake, and Atlassian—leverage existing customer data to reduce the tokens AI models process, cutting expenses significantly.
Investors previously favored semiconductor stocks over enterprise software, assuming AI would render the latter redundant. However, rising AI deployment costs have shifted focus to software solutions that enhance model efficiency without proportional expense increases.
AI models charge by the token, counting input and output text. Proprietary data within these platforms improves accuracy and reduces token usage, enabling broader AI adoption without cost overruns.