AI model costs are pushing startups towards cheaper open weigh
THE SO WHAT
Harvey swinging from +50% to -50% gross margin before rescuing economics with an in-house model on Moonshot’s Kimi K3 is the new AI startup cautionary tale—API costs can erase your business overnight. If your unit economics depend on closed-model APIs, you need an explicit path to open weights, custom models, or hybrid serving this quarter.
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