AI-native startups will not enjoy the same luxury of high gross margins that traditional software-as-a-service (SaaS) firms once did, said Harshit Kumar, associate vice president (AVP) of venture capital (VC) firm Kalaari Capital during an event in Gurugram.
Kumar attributes this decline in margins to rising inference and review costs, saying AI startups cannot rely on the kind of high margins traditionally associated with SaaS businesses.
