A TSUNAMI OF COGS

Summary from the TLDR AI newsletter

The AI industry is in correction mode. OpenAI, Anthropic, and Cursor are subsidizing demand with negative margins. Google was surprised by the AI boom, and it took a while for it to get its act together, but it is now coming back strong. Its pockets are full, and it is better positioned to play the negative margin game. If challengers don't want to drown in a tsunami of costs, something has to change.