Internet era: more users → marginal cost → zero → higher margins. That's how Google and Meta were built.
LLM era: more users → every query burns tokens → bigger GPU bills. More traffic can mean more losses.
That's why "who makes money in consumer AI" is still an open question. But hardware cash flows have already landed:
Hyperscalers building data centers; Servers shipping; HBM + NAND undersupply; AI PC rolloutIn the AI capex cycle, hardware is where capex converts to cash flow first.
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