The big AI companies are going to see their margins disappear

OPINION The future of AI is unwritten, but the writing is on the wall – your margin is my opportunity.

Amazon founder Jeff Bezos said as much more than a decade ago in support of the e-souk's low-price, low-margin sales strategy.

That opportunity exists in the AI training and inference business. But perhaps not for long.

Two leading American AI companies, Anthropic and OpenAI, are not actually profitable at this point, but their pitch to investors is something along the lines of "just hang in there a few more years and keep sending cash."

Given reports that Claude Code subscribers paying $200 a month can potentially consume $5,000 worth of tokens and that OpenAI is also losing money on subscriptions, it starts to become a bit clear why Anthropic, OpenAI, Google, and Microsoft have already started pushing customers toward metered usage pricing. AI revenue needs to go up...

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