PitchBook: vertical AI apps yield ~65% gross margins, better ROI than horizontal
MartinGTobias · x · 2026-10-27
Martin Tobias shared PitchBook analysis showing investors are shifting away from infrastructure hyper-growth toward specialized vertical AI applications, which offer better margins (65% gross) and much higher potential for short-term profitability, per the PitchBook AI & ML VC Trends Report and AI Outlook.
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