People are still mentally locked in to the world where code was expensive. Code now is extremely cheap. And if it is cheap, then it makes sense that every customer gets their own.
Before - we built factories to give people heavy machinery. Now, we run a 3d printer.
Everyday I thank SV product-led growth cargo cults for telling, sometimes even forcing our competition to not go there.
I know there is lots of bearish sentiments here. Lots of people correctly point out that this is not the same math as FAANG products - then they make the jump that it must be bad.
But - my guess is these companies end up with margins better than Tesla (modern manufacturer), but less than 80%-90% of "pure" software. Somewhere in the middle, which is still pretty good.
Also - once the Nvidia monopoly gets broken, the initial build out becomes a lot cheaper as well.