Anthropic has shared that API inference has a ~60% margin. OpenAI's margin might be slightly lower since they price aggressively but I would be surprised if it was much different.
Is that margin enough to cover the NRE of model development? Every pro-AI argument hinges on the models continuing to improve at a near-linear rate
Gross margin
Is that margin enough to cover the NRE of model development? Every pro-AI argument hinges on the models continuing to improve at a near-linear rate