Revenue per employee in AI startups might be very high but it obscures the inference costs that scale linearly with customer use. Hard to charge customers enough to recoup those inference costs. These startups end up burning cash in spite of the high revenue per employee number. And they are easily copyable by competitors and face the threat of absorption by the underlying model.
Revenue per employee in AI startups might be very high but it obscures the inference costs that scale linearly with customer use. Hard to charge customers enough to recoup those inference costs. These startups end up burning cash in spite of the high revenue per employee number. And they are easily copyable by competitors and face the threat of absorption by the underlying model.