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This makes me wonder - what gross margin might Cursor, and the similar AI IDEs, might be operating at right now? Traditionally, most SaaS was designed to have
by severusdd 1y ago
This makes me wonder - what gross margin might Cursor, and the similar AI IDEs, might be operating at right now?
Traditionally, most SaaS was designed to have 80%+ gross margin (cost after direct costs such as cloud hosting, support etc.). Surely cursor etc. would have much smaller margin with 500+ premium-model requests @20$?
- FinnLobsien 1y agoI read a Substack titled "Does AI have a gross margin problem" recently that stipulated that Anthropic was operating at 50-55% gross margins and investors expect long-term gross margins to be at 60ish%. Granted, they own the models, so you could assume people building with their models capture less margin.