Zach Lloyd

That's not a good business to be in.

And so we don't want to be in that business, but I don't believe that.

And so it's like, do what you need to do right now to like get the thing to a good enough spot without screwing up growth is kind of the main point.

End state's not obvious because it totally depends what happens in the model market.

Somewhere there's going to be a margin, right?

Like Anthropic has a big margin on their API business right now.

What I've heard is 60% margin on Anthropic's API.

I've heard 50% on OpenAI's.

Again, I've heard this.

I don't know if it's exactly right or not, but if there were no margin anywhere in this stack, I think it's really bad, but there's margin.

The question then is like, well, who's capturing that?

And I think it depends.

If the model providers are really competitive,

even better would be like some open source model that's good enough, I think the app layer is going to get a lot of value.

If you think that it's going to be like one model provider runs away with it, then that's horrible for us.

I don't think that's going to happen.

I think that's, there's too many smart people who are working on building these models.

So our bet is like, there's competition.

It might look like G cloud, AWS, Azure level competition, or it might look like actually like open source, like database competition.

And then we're going to have an awesome business, but I don't know.