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AI Prompt: Vendor Economics

[Year/Quarter] AI Vendor Profitability & Unit Economics1

Executive Summary

  1. The "Loss-Model" State
  • Current Market Trend: (e.g., Aggressive land-grab vs. focus on operational efficiency)
  • Primary Growth Driver: (e.g., Infrastructure scaling, R&D spend, or enterprise adoption)
  • The Profitability Split: Briefly distinguish between "Pure-Play Labs" (OpenAI/Anthropic) and "Ecosystem Providers" (Google/Meta/Microsoft).
  1. Vendor Financial Performance Matrix

    Vendor Current Status Annual Revenue
    (Projected)
    Net P&L Strategic Moat
    [Vendor Name] [Profitable/Loss] $[Value] $[Value] [e.g., Vertical Integration]
    [Vendor Name] [Profitable/Loss] $[Value] $[Value] [e.g., Open Source Dominance]
  2. Unit Economics: The "Token Margin" Analysis

    Ranked from Most Profitable to Least based on estimated Gross Margin per 100M Tokens.

    1. [Vendor A]: $[Profit/Loss]

      • Pricing Context: Current market rate per 1M tokens.
      • Efficiency Note: (e.g., Custom silicon vs. rented compute)
    2. [Vendor B]: $[Profit/Loss]

      • Pricing Context: [Details]
      • Efficiency Note: [Details]
    3. [Vendor C]: $[Profit/Loss]

      • Pricing Context: [Details]
      • Efficiency Note: [Details]
  3. Competitive Deep Dive

  • The "Pure AI" Burn: Analyze why specialized labs are operating at a deficit (e.g., Training $100B models).
  • The Ecosystem Advantage: Explain how tech giants subsidize AI costs through existing revenue streams (Ads, Cloud, Hardware).
  • The "Margin Tax": Identify which vendors are paying a premium for compute versus those owning the hardware stack.

How to use this template:

  • Update Quarterly: Use 10-K and 10-Q filings for public companies (Google, Meta, MSFT).
  • Track Token Pricing: Monitor API pricing pages for OpenAI and Anthropic to update Section 3.
  • Infrastructure News: Adjust the "Efficiency Note" based on new chip releases (e.g., Blackwell, TPU v6).
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