As AI inference costs fall, rising customer expectations will keep service margins from converging toward 100%.

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• Inference is a high-margin business even for a middleman: renting GPUs at scale, some models carry an eighty per cent margin over their sticker price. DRDax Raad27 May 2026similar wordingBuilds developer tools — SST, and now OpenCode at Anomaly
• Most of the price gap between o1 and R1 is margin rather than efficiency: OpenAI's inference gross margins are north of 75% because nobody else could serve the capability. DPDylan Patel3 Feb 2025similar wordingFounder and chief executive of SemiAnalysis
• Demand for intelligence is highly elastic — every fall in inference cost is met with rapidly growing usage. GRGuillermo Rauch23 Aug 2026similar wordingCEO of Vercel; creator of Next.js and Socket.IO
• Demand for inference may be growing exponentially while GPU production can only grow linearly, and the tightening happens where those two lines cross. DRDax Raad27 May 2026similar wording
• A competitor six months or a year behind the frontier can stay close, because the cost of AI falls more than tenfold every year. JHJensen Huang8 Jan 2026similar wordingCo-founder and CEO of NVIDIA since 1993

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