What does AI coding assistants face crushing economics: paying for cutting-edge LLMs while competing with well-funded ri

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AI coding assistants face crushing economics: paying for cutting-edge LLMs while competing with well-funded rivals. Windsurf's near-sale reveals how model costs can degrade margins faster than growth, forcing strategic exits before suppliers become competitors. Windsurf's valuation doubled to $2.85B in 6 months before failed deals Gross margins described as 'very negative' due to LLM costs Competition includes GitHub Copilot with 1M+ users AI coding tools face structural marg

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AI coding startups face unsustainable costs despite rapid growth