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Comment by matthewdgreen

21 hours ago

They can't do this at the same margins. Cloud compute traditionally has <= 30% margins, and that's the very generous profit margin that folks like AWS are able to squeeze out of it with lock-in and proprietary tooling (something that will probably go away as software becomes more commoditized.) Frontier model companies (e.g., SpaceX) have been promising profit margins in the 75%+ range.