- “Anecdotally, we have seen a surprisingly consistent pattern in the financial data of AI companies, with gross margins often in the 50-60% range – well below the 60-80%+ benchmark for comparable SaaS businesses.
- The compute resources required to train state-of-the-art AI models has grown over 300,000x since 2012, while the transistor count of NVIDIA GPUs has grown only ~4x!
- Training a single AI model can cost hundreds of thousands of dollars (or more) in compute resources. While it’s tempting to treat this as a one-time cost, retraining is increasingly recognized as an ongoing cost”
https://a16z.com/2020/02/16/the-new-business-of-ai-and-how-its-different-from-traditional-software/