The Minutes of Dylan Patel on margins https://minutesof.com/dylan-patel/on/margins/ Everything Dylan Patel has said on margins: 14 verbatim quotes between October 2025 and August 2026, each with a timestamp and a link to the recording it… en Sun, 30 Aug 2026 16:22:17 +0000 Patel reports OpenAI gross margins rose from 30% to 55% overall, 50% to 65% excluding free users. https://minutesof.com/q/552929f1-c8ae-43c3-8501-0ab7970989ce/ https://minutesof.com/q/552929f1-c8ae-43c3-8501-0ab7970989ce/ “You look at OpenAI late last year, their margins had were roughly 30% gross margin, but if you stripped away the free users, they were at 50%.” — RAISE Summit Thu, 16 Jul 2026 16:44:57 +0000 margins Patel says OpenAI's total gross margin rose from 30% to 55% over the past year. https://minutesof.com/q/780c360e-dead-4817-88e5-9b6077a27b0e/ https://minutesof.com/q/780c360e-dead-4817-88e5-9b6077a27b0e/ “OpenAI late last year, their margins had were roughly 30% gross margin, but if you stripped away the free users, they were at 50%. Now, total company gross margin is closer to 55%,” — RAISE Summit Thu, 16 Jul 2026 16:44:57 +0000 margins Patel says OpenAI's gross margins rose from 30% to 55% overall, reaching 65% excluding free users. https://minutesof.com/q/40fc6c3a-2654-41e7-8243-0b0ea3467c2a/ https://minutesof.com/q/40fc6c3a-2654-41e7-8243-0b0ea3467c2a/ “Now, total company gross margin is closer to 55%, and if you strip away the free users, they're at about 65%.” — RAISE Summit Thu, 16 Jul 2026 16:44:57 +0000 margins Patel states Anthropic is profitable excluding stock compensation in Q2 with 80% margins on Opus tokens. https://minutesof.com/q/db45dba5-ecdb-452c-8fae-3210d613d134/ https://minutesof.com/q/db45dba5-ecdb-452c-8fae-3210d613d134/ “Anthropic in Q2 is profitable, their net income profitable, excluding stock based compensation. And I think by Q3 they may even be profitable, including stock based compensation.” — Sequoia Capital Tue, 30 Jun 2026 12:00:25 +0000 margins Patel reports Anthropic is Q2 profitable excluding SBC, expects Q3 profitability including SBC with 80% margin https://minutesof.com/q/7f1b8019-87b9-4143-aabf-b8e158bf4a47/ https://minutesof.com/q/7f1b8019-87b9-4143-aabf-b8e158bf4a47/ “And I think by Q3 they may even be profitable, including stock based compensation. That's how profitable they're getting, and their margins on an Opus token, at least Opus 4.8 token, is north of 80” — Sequoia Capital Tue, 30 Jun 2026 12:00:25 +0000 margins Patel reports Anthropic achieved over 80% margins on Opus tokens and expects full profitability including stoc https://minutesof.com/q/08d73c3f-320f-4d28-8b21-9083da9b5bf0/ https://minutesof.com/q/08d73c3f-320f-4d28-8b21-9083da9b5bf0/ “That's how profitable they're getting, and their margins on an Opus token, at least Opus 4.8 token, is north of 80 for the API price.” — Sequoia Capital Tue, 30 Jun 2026 12:00:25 +0000 margins Patel says NVIDIA must be 2x better than competitors to justify their 75% plus margins. https://minutesof.com/q/0af8e524-c5df-44cd-a672-ddcab4d2b6de/ https://minutesof.com/q/0af8e524-c5df-44cd-a672-ddcab4d2b6de/ “NVIDIA recognizes they're they're the leader, they're the tent pole. Hey, in one respect, they can just run faster than everyone, but it's kind of hard to be two x better than Google or or OpenAI or whoever else's internal chip, right, to justify their, you know, 75% plus margins.” — The MAD Podcast with Matt Turck Thu, 05 Feb 2026 13:30:16 +0000 margins Patel says NVIDIA must be 2-4x better than competitors to justify 75% margins and 4x pricing above costs. https://minutesof.com/q/fe51e725-980e-481f-b76c-2e41dcbdde73/ https://minutesof.com/q/fe51e725-980e-481f-b76c-2e41dcbdde73/ “And then they have to be two x to four x better to justify four x better to justify their margins because that's what they're charging above cogs.” — The MAD Podcast with Matt Turck Thu, 05 Feb 2026 13:30:16 +0000 margins Patel states top neo clouds achieve 35-40% gross margins while many others are losing money. https://minutesof.com/q/84da5d17-180b-411f-aac0-520cd84480d9/ https://minutesof.com/q/84da5d17-180b-411f-aac0-520cd84480d9/ “And this has enabled, you know, the top in the industry companies to have gross margins of 35, 40%. And now there's a ton of Neo Clouds that are losing money.” — Clockwork Fri, 21 Nov 2025 17:18:51 +0000 margins Patel says Weka and Vast make high margins on storage for multimodal AI workloads despite drive vendors making https://minutesof.com/q/b2443f6f-24bb-433c-a61e-4fea60908146/ https://minutesof.com/q/b2443f6f-24bb-433c-a61e-4fea60908146/ “But then there's also, on the storage side, the drive vendors don't make any money. But Weka and Vast, I mean, look at their pricing models.” — Open Compute Project Thu, 23 Oct 2025 06:01:45 +0000 margins Patel says storage vendors Weka and Vast make high margins while drive vendors make no money. https://minutesof.com/q/4e249973-cf25-440f-9f24-44741b266928/ https://minutesof.com/q/4e249973-cf25-440f-9f24-44741b266928/ “But then there's also, on the storage side, the drive vendors don't make any money. But Weka and Vast, I mean, look at their pricing models. They make crazy margin on storage.” — Open Compute Project Thu, 23 Oct 2025 06:01:45 +0000 margins Patel claims NVIDIA takes a 5x markup on manufacturing cost, making power efficiency less significant for TCO. https://minutesof.com/q/b3727da7-5066-4e91-86cd-d25dc8497f23/ https://minutesof.com/q/b3727da7-5066-4e91-86cd-d25dc8497f23/ “So, in most cases, don't on an NVIDIA deployment, right? That's where NVIDIA takes 5x markup on their manufacturing cost, right?” — Open Compute Project Thu, 23 Oct 2025 06:01:45 +0000 margins Patel states NVIDIA takes 5x markup on manufacturing cost, making power differences more significant for AMD d https://minutesof.com/q/32b9ed68-5403-47b2-8224-5391430835dc/ https://minutesof.com/q/32b9ed68-5403-47b2-8224-5391430835dc/ “If it's another deployment, if it's AMD, then that that that 20% power difference might translate to eight or 9% TCO difference when you when you talk about power cost and data center capacity cost.” — Open Compute Project Thu, 23 Oct 2025 06:01:45 +0000 margins