Davriellelouna@lemmy.world to

Technology@lemmy.worldEnglish · 14 days ago

Techcrunch reports that AI coding tools have "very negative" gross margins. In other words, they are losing money on every user.

579

Techcrunch reports that AI coding tools have "very negative" gross margins. In other words, they are losing money on every user.

Davriellelouna@lemmy.world to

Technology@lemmy.worldEnglish · 14 days ago

Exclusive: The high costs and thin margins threatening AI coding startups

Coding assistant startups are highly unprofitable, says a source familiar with Windsurf financials.

Chat

Knock_Knock_Lemmy_In@lemmy.world
link
fedilink
English
arrow-up
1·
12 days ago
You are correct. However, you can only really blitzscale with VC backing.

Technology@lemmy.world

technology@lemmy.world

You are not logged in. However you can subscribe from another Fediverse account, for example Lemmy or Mastodon. To do this, paste the following into the search field of your instance: !technology@lemmy.world

This is a most excellent place for technology news and articles.

Our Rules

Follow the lemmy.world rules.
Only tech related news or articles.
Be excellent to each other!
Mod approved content bots can post up to 10 articles per day.
Threads asking for personal tech support may be deleted.
Politics threads may be removed.
No memes allowed as posts, OK to post as comments.
Only approved bots from the list below, this includes using AI responses and summaries. To ask if your bot can be added please contact a mod.
Check for duplicates before posting, duplicates may be removed
Accounts 7 days and younger will have their posts automatically removed.

Approved Bots

Visibility: Public

This community can be federated to other instances and be posted/commented in by their users.

1.63K users / day
5.58K users / week
9.81K users / month
17.2K users / 6 months
1 local subscriber
74.4K subscribers
2.63K Posts
21.7K Comments
Modlog