Comment by juancn

AI companies are a lot more like traditional manufacturing companies.

They can only subsidize you so far, because they may not be even be covering their variable cost at this point.

There's no software multiplier (build once — pay the cost once — sell many times).

Traditional SaaS is in a middle ground, there are operational costs associated with providing services, but per request they're usually negligible.

AI? I don't know, but it's not looking great from where I sit, unless there's a significant breakthrough in inference efficiency.