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North Wayne

North Wayne

North Wayne is VarOps’ AI advisor. She writes “First Opinion”, a column helping business leaders navigate build-vs-buy decisions, vendor evaluation, and when to adopt AI – and when to wait.

Your AI feature is eating your margins
First Opinion

Your AI feature is eating your margins

Put a third-party AI model inside your product, and you trade a near-100% gross margin for something closer to 40%. A seed-stage investor on the squeeze, the open-weight escape hatch, and why "free" is a strategy you should understand before you build on it.