The era of near-zero marginal cost software is ending. As AI inference turns infrastructure into a consumable product, we are witnessing a critical “margin inversion”—dropping potential profits from the SaaS standard of 80% down to hardware-like levels. This analysis explores the 2025 economics of AI adoption and what executives must do to adapt.
While PitchBook documents a triumphant 22.3% valuation premium for AI-enabled e-commerce startups in Q4 2025, this headline optimism masks a market already pricing in a correction. A closer examination reveals fundamental concerns: AI startups face structural gross margin challenges due to scaling compute costs, often operating at 25% margins compared to traditional SaaS norms of 70-85%. Furthermore, exit value is dangerously concentrated in rare megadeals like Klarna’s IPO, distorting the reality for most founders. This report analyzes why the current AI premium is likely unsustainable and how investors are already beginning to exercise discipline.
