David Breach

The Bridge Ep. 10: AI Broke the Rule of 40. Meet the Rule of 70.

Vista Equity Partners’ David Breach argues that AI is rewriting software economics, pushing the old Rule of 40 toward a Rule of 60 or 70 as incumbents use enterprise data, context, and distribution to create both faster growth and higher margins. He also says AI’s real bottleneck is inference cost, which is driving a split between training and purpose-built inference infrastructure, while the biggest value capture will likely sit in the enterprise application layer.