TLDR Founders · MISCELLANEOUS
THE 90% GROSS MARGIN ERA IS OVER
Summary from the TLDR Founders newsletter
AI companies need a new way to pitch their economics. The cost of serving customers is much higher with AI. Companies need to separate gross margin by customer and gross margin by pricing cohort. When changing pricing, you ideally want to show investors that customers on the new model have higher margins than those on the old one, and that the gap keeps widening.