Profit margins shrink in the AI programming market

AI-powered coding startups are facing serious challenges due to high operating costs and thin profit margins, TechCrunch.com reported.

Many companies are burning through cash quickly because of the high costs of model training, server infrastructure, and licensing fees.

Experts note that these startups struggle to compete with tech giants that can offer cheaper and more scalable AI services.

In many cases, customer acquisition costs exceed the revenue generated, threatening long-term sustainability.

Investors are becoming cautious, given the high expenses and low profitability in this sector.

According to the article, only startups that can combine innovative products with strong economic efficiency are likely to survive in the market.

Nodirbek Razzokov

Editor of «ZAMIN.UZ»