Joe Schmidt says targeting 85 percent AI gross margins is a mistake
Joe Schmidt · How Scale AI is Pioneering the Future of Work · Aug 26, 2025 · at 39:50
Joe Schmidt (a16z partner) discusses software gross margin strategy with Ben Scharfstein (Head of Product at Scale AI), arguing against rushing into traditional PLG margins early in the AI wave.
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“I think that's a tremendous mistake. Like I think it's actually probably the biggest mistake you can make right now.”
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