> gross profit margins on AI model inference are very high.

the gross margins on growing potatoes is very high, if you exclude all the other costs needed to get the potatoes to market.

Think about it, you take some potatoes you had left over from last yeah, dump them in the ground and wait 9 months. Boom pure profit.

This of course excludes the cost of the land, machinery needed to plant, till and harvest, storage, pesticide, fungicide and herbicide.

Then the transport, cleaning and packaging.

If you arbitrarily cut out all the bits of the business needed to make revenue, everything is a profit.