the full guide

AI software stack

The AI stack is the set of layers that make up an AI product: hardware at the bottom, then data, frameworks, models, APIs and applications on top. Most people and companies build only at the upper layers.

8 min Intermediate

What you need: The earlier topics of this module.

Definition

The AI stack is the set of layers that make up an AI product: hardware at the bottom, then data, frameworks, models, APIs and applications on top. Most people and companies build only at the upper layers.

In simple words

It's like running a restaurant. Someone makes the stoves (chips), someone grows the food (data), someone writes recipes (frameworks and models), and you serve the meal (the app). You don't have to farm in order to open a restaurant.

Why it matters

It tells you where you can realistically work. Training a frontier model costs a fortune, while building an app on an API can start today at very little cost.

How it works

LayerWhat it isExamples
ApplicationWhat users touchChatGPT, Copilot, your app
APIAccess to a model over the webOpenAI, Anthropic, Google APIs
ModelThe trained networkGPT, Claude, Gemini, Llama
FrameworkTools to build and trainPyTorch, TensorFlow, scikit-learn
DataWhat models learn fromDatasets, databases, documents
ComputeChips and data centresGPUs, TPUs, cloud

Common mistakes

  • Believing you must train your own model. Most products use an existing one.
  • Building a product only as a thin layer on one vendor, with no plan if prices or terms change.

Check yourself

Question 1

1. PyTorch belongs to which layer?

Question 2

2. Where do most new AI startups build?

Summary

  • Compute, data, frameworks, models, APIs, applications.
  • You can build at the top without owning what's below.

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