High Inference Margins Will Keep Capital Flowing
basedjensen · x · 2026-07-19
The author addresses questions about inference pricing and frontier model funding. The core argument: inference gross margins are currently very high (around 70%); even if margins turn negative in the future, capital will continue to flow because such investments are seen as a path toward AGI.
The implication is that the ability to profit from high-priced inference isn't the sole determinant for raising funds; capital is primarily driven by the expectation of getting "closer to AGI."
More from Venture
- Investor argues Palantir-Nvidia partnership should slash Anthropic's IPO valuation — pdamodaran · 2026-09-11
- Moonshot's annualized revenue jumped from $300M to $1B in two months after Kimi K3 — Hesamation · 2026-09-11
- Mid-market companies' AI SEO bottleneck is ops execution, not strategy, says SEO practitioner — gaganghotra_ · 2026-09-11
- A YouTuber with 1.5M followers paid this indie maker for a consulting call — tibo_maker · 2026-09-11
- 71% of people have never used generative AI — the bubble argument for microsaas — iamaliveix · 2026-09-11
- Glean grew from $100M to $300M ARR in roughly fifteen months — yogthinks · 2026-09-11