Marginal Cost

topic on 4 shows · 5 statements across 5 episodes

Lenny's Podcast the a16z Podcast Big Technology 20VC

5 statements about Marginal Cost, every show

Evans: High marginal compute costs hinder breakout consumer AI apps
“We don't have breakout a consumer AI apps yet because I think because of marginal cost more than anything else, you can't make it free and get fifty million users and then have a revenue model.”
Benedict Evans May 31, 2026 ▶ 1:15:14 The most rational take on AI you’ll hear this year
BIG TECHNOLOGY Prediction Not checkable as stated
Suleyman: AI Knowledge And Companions Will Reach Zero Marginal Cost
“The ability to access knowledge the ability to use that knowledge to get stuff done, to write new programs, to do new scientific discovery, to get access to AI companions and emotional support. These things are gonna be zero marginal cost in a decade.”
Mustafa Suleyman Nov 12, 2025 ▶ 31:54 Could LLMs Be The Route To Superintelligence? — With Mustafa Suleyman
20VC Prediction Open · timeframe Apr 2029
Mensch: Foundational AI model margins will not drop to zero
“I don't think there's any way in which the marginal cost and the margin of the most important part of that technology, which is really the foundational layer becomes zero because otherwise there's definitely going to be I guess fairness problem.”
Arthur Mensch Apr 29, 2024 ▶ 20:12 Arthur Mensch: Open vs Closed - Who Wins and Mistral's Position | E1146 · 20VC with Harry Stebbings
20VC Insight
Plantenga: Steering marketplaces by average CAC instead of marginal CAC is dangerous
“So therefore, it's very, very important to consistently really look at the marginal cost and not the average cost of all your cock, because that's also a very, very big mistake, right? You can say, I have a cock of This. Okay, nice, but what is, let's say, you…”
Thomas Plantenga Feb 12, 2024 ▶ 43:03 Thomas Plantenga & Alex Taussig: Vinted CEO's Ultimate Guide to Scaling Marketplaces | E1114 · 20VC with Harry Stebbings
a16z Insight
Christensen: Marginal cost thinking traps established companies facing disruption
“In accounting, we teach people that you should ignore fixed and sunk costs and only look at the marginal cost and marginal revenue Associated with the proposal that you're making a decision about. And that idea that you should ignore sunk costs, and just look …”
Clayton Christensen Jan 2, 2019 ▶ 17:22 a16z Podcast | Competing Against Luck

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