Tandon: AI token costs reduced software margins to service-level margins
Tanay Tandon · How He Turned a Blood Test Startup Into $7B OS for Healthcare · Sourcery with Molly O'Shea · May 19, 2026 · at 6:05
Tanay Tandon, CEO of Commure, evaluates how the cost of LLM tokens is reshaping gross margin structures across the software industry.
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“One of the challenges is that these token businesses have essentially turned a lot of software businesses to service level margin, and if you play the game the same way you did two years ago, you can blow up and you can burn a lot of cash in the process”
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