In October 2026, the headlines said Anthropic had passed OpenAI in revenue. Reuters, citing unnamed sources, reported that Anthropic’s annualized revenue crossed $65 billion in July. OpenAI reportedly told investors its annualized revenue for September was almost $50 billion, below the figure approaching $70 billion it had signaled earlier. Keep in mind these are press […]
Gross Margin
What Should Be Included in AI COGS
If you’ve added AI features to your SaaS product in the last 18 months, your gross margin probably looks different than it used to. Maybe you haven’t noticed because you haven’t mapped AI costs to COGS. Or maybe you have, and you’re trying to figure out what’s normal. Either way, you need a framework. My […]
How to Correctly Calculate your SaaS Gross Profit Margin
There are many financial metrics that I calculate and review each month, and this includes my SaaS gross margin. Of course, it’s not just your overall gross margin that is important. You must also calculate and understand gross margins for each of your revenue streams. Depending on your business model, these revenue streams may include […]