.@zebulgar on the AI startup economy: "Software's eating the world? It's ironic. Margins aren't what they seem. SaaS companies have high sales and marketing spend." "The publicly reported revenues of AI labs has now surpassed the entire publicly traded SaaS industry." "The free cash flow ends up with Oracle, Microsoft, Nvidia, and energy companies. The application layer captures none of the margins. It’s the hardware giants that win." "I find it fascinating that some AI companies have worse gross margins than a space factory company."