damn I never thought about the possibility that a lot of AI startups only have good margins until people REALLY start using them as models get better, users burn more token evaporating your margins so you can only limit them hardcore or switch to open weight models

theredlinehq@theredlinehq13h ago

TRACKED CHANGES: Harvey’s gross margin fell from about 50% to -50% by June as agent token use spiked twentyfold on rented OpenAI and Anthropic models, Bloomberg reports. https://t.co/tOVlC7Mw2S