TLDR Tech / Dev
The Long-term Reality of Hyperscalers: The Good, The Bad, and The Ugly Scenarios
The long-term sustainability of high gross margins for private AI labs is questionable. This concern is supported by reports showing OpenAI's adjusted gross margin for inference dropped to 33% in 2025, below its own expectations. Well-funded, vertically integrated competitors like Alphabet can apply pricing pressure and have better cost structures, forcing independent labs to lower API prices and increase massive, uncontrollable training expenditures.
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