Compound AI is a design principle that emphasizes the importance of composability and flexibility in AI system design, moving away from traditional model-centric approaches. It involves breaking down complex systems into modular components with well-defined tasks, allowing for easier evaluation, replacement, and combination of these components. This approach enables companies to harness the power of rapidly evolving generative AI models by integrating them into products in a seamless and value-adding way. The platform deepset Cloud is designed to support this paradigm, providing a flexible and scalable environment for building and deploying Compound AI systems. By adopting a product mindset and embracing composability, organizations can overcome traditional hurdles in AI development and create more efficient and effective solutions.