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Techcrunch reports that AI coding tools have "very negative" gross margins. In other words, they are losing money on every user. (techcrunch.com)
submitted 1 year ago by to c/technology@lemmy.world
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[–] 6 points 1 year ago (3 children)

Yeah, it’s basically like early days of cable, Uber, Instacart, streaming, etc. They have a lot of capital and are running at a loss to capture the market. Once companies have secured a customer base, they start jacking up the prices.

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  • [–] 5 points 1 year ago (2 children)

    in this case there isnt customer base for AI, only ceo and c-suites are.

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  • [–] 0 points 1 year ago

    There are billions of free users available. All they need to do is strip-off few excellent features of their free model and hide it behind a pay wall annnnd voila these free users have now became their paying customers!

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