SIGNALAI·Jul 8, 2026, 10:55 PMSignal80Short term

Why AI Infrastructure must evolve for Agent Experience — Akshat Bubna, Modal CTO

Source: Latent Space

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Why AI Infrastructure must evolve for Agent Experience — Akshat Bubna, Modal CTO

2 years after our first coverage, we return with Modal's other cofounder to explore why Agent Experience is working now, and everything they have learned building the new agent cloud.

Why this matters
Why now

The proliferation of AI agents is creating an urgent need for specialized infrastructure beyond traditional cloud, leading to companies like Modal innovating in this space.

Why it’s important

The evolution of AI infrastructure specifically tailored for agents is critical for scaling autonomous systems and unlocking their full economic potential.

What changes

The focus in AI infrastructure is shifting from general-purpose compute to specialized environments that support the unique requirements of AI agents, facilitating their performance and adoption.

Winners
  • · AI agent developers
  • · Cloud infrastructure providers specializing in AI agents
  • · Software-as-a-Service industry
Losers
  • · General-purpose cloud providers (who fail to adapt)
  • · Companies relying on manual workflows
  • · Traditional enterprise software
Second-order effects
Direct

More sophisticated and reliable AI agents become widely deployable across various industries.

Second

The cost-effectiveness and performance of agentic systems improve dramatically, leading to their integration into core business operations.

Third

Entire white-collar workflows are automated, fundamentally altering labor markets and creating new job categories focused on agent oversight and development.

Editorial confidence: 95 / 100 · Structural impact: 70 / 100
Original report

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