TLDR Founders · HEADLINES & TRENDS

SO YOU WANT TO SELL INFERENCE

tomtunguz.com3 min read

Summary from the TLDR Founders newsletter

AI companies selling inference face a zero-margin, cost-plus pricing dilemma. They can achieve better margins through value-based pricing, charging based on outcomes rather than raw inference costs. Optimizing inference costs using model routing, caching, and distillation can also enhance margins and offer a competitive edge.