Blockbuster is a framework for AI operator fusion in inference programs. The Blockbuster framework is compatible with any multiprocessor architecture that has a tiered memory hierarchy, including GPUs, multi-core CPUs, and some AI accelerator chips. It includes a graph-based representation for AI workloads, called a block program, which explicitly models how blocks of data move between the memory tiers. It also includes an operator fusion procedure, which is made up of a candidate selection algorithm and a fusion algorithm that fuses each individual candidate - this two-algorithm structure makes Blockbuster especially suitable for large AI programs. The current paper focuses on the fusion algorithm, which is a rule-based technique. While the literature is full of previous rule-based fusion algorithms, what sets our algorithm apart is its direct modeling of data movement between memory tiers, resulting in uniquely powerful fusion results. As a first sanity check, we demonstrate how our algorithm automatically rediscovers the well-known Flash Attention kernel. Then, we demonstrate the real power of our approach by fusing LayerNorm with matrix multiplication and RMSNorm with FNN-SwiGLU - the latter involves fusing three matrix multiplications, a Hadamard product, a reduction, and a few elementwise operations into a single mega-kernel.