this post was submitted on 10 Aug 2025
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Techcrunch reports that AI coding tools have "very negative" gross margins. In other words, they are losing money on every user. (techcrunch.com)
submitted 1 day ago* (last edited 1 day ago) by Davriellelouna@lemmy.world to c/technology@lemmy.world
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[–] Passerby6497@lemmy.world 6 points 23 hours ago* (last edited 23 hours ago)

no one important puts used hardware in their racks

FTFY. Just about every msp I've worked for has cut corners and went with 2nd hand (or possibly grey market) hardware to save a buck, including the ones who colo in "real" data centers. I would not be surprised to find that we're onboarding these kinds of cards to make a bespoke AI platform for our software customers here in a few years.