In episode #332, Ben Murray explains why AI companies with high inference costs and lower gross profit margins must scale dramatically faster—up to 6x larger—to match the financial performance of a comparable SaaS business. Using simple financial modeling and the core principles of SaaS economics, Ben breaks down how AI margins, variable COGS, and TAM expansion interact to shape the financial trajectory of AI-native companies.

This episode builds on a recent blog post and downloadable Excel model, both linked in the show notes.

Key Topics Covered

Why This Matters

This episode is critical for:

Resources Mentioned

Full blog post on AI vs. SaaS economics: https://www.thesaascfo.com/the-real-economics-of-saas-versus-ai-companies/

SaaS Metrics Course: https://www.thesaasacademy.com/the-saas-metrics-foundation