one last thing on saas: if you built your saas business before ai, your entire business was designed around one assumption which was that software has ~zero marginal cost. ai blows that up. every ai action costs money. incumbents now have to create more expensive tiers or intr…↗

Why is it that the companies with the highest gross margins and zero marginal costs are also, as a group, consistently unprofitable? It just seems odd to me. Over the past few years, one hypothesis I have can be summarized as follows: "Your marginal advantage is inversely corr…↗