AI lab economics: GPU margins, growth and R&D costs
One post argues that AI labs’ margins from running software on GPUs should be assessed separately from R&D spending, then weighed against growth costs and competition.
TLDR
A post proposes judging AI labs first on whether they can buy GPUs, run software and sell it profitably. It points to a reported 80% margin as worth examining on its own, then asks whether giving 20% to channel partners such as AWS and Google would be worth the extra capacity and demand. Separately, the author argues that raising money for faster R&D may be worthwhile in a competitive market. Open questions include whether training costs eventually plateau and how long margins remain defensible. Despite those uncertainties, the author sees a plausible path to making the economics work.
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