Buy vs build

The decision to build or buy enterprise AI solutions has shifted significantly due to advancements in generative AI and autonomous coding systems, which have drastically reduced the cost of software development [2, 4]. Historically, buying software was considered faster, safer, and more cost-effective, while building was reserved for organizations with deep pockets and highly specific needs [2]. Today, the maturation of open-source models and affordable hardware makes building custom AI systems increasingly accessible [7]. While building allows for tailored, domain-specific applications, it also introduces new challenges, including the need for robust enterprise governance and the risk of infrastructure overbuilding [2, 8, 11]. Companies must carefully weigh the economic implications, such as return on investment and capital efficiency, against the risks of an infrastructure arms race that is currently straining resources like power capacity [1, 11, 12].