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."
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