🧠 Food for thought

Implications, context, and why it matters.

Lovable’s revenue hides a different cost setup

• Traditional software firms often run 80-90% gross margins, while AI-native companies can land at 25-60% because computing costs hit every user action 1.
• This can drain cash. GitHub Copilot (an AI coding assistant) was said to lose $20 to $80 per user each month on its early $10 plan when usage spiked 1.
• As a result, many AI companies move to outcome-based or usage-based pricing so revenue grows with the direct costs of operating their AI models 2.

‘Vibe coding’ adds new technical and organizational debt

• Tools such as Lovable speed up builds, yet they can leave behind piles of hard-to-maintain code. GitClear (a software code analysis firm) warned, “I don’t think I’ve ever seen so much technical debt created in so little time” 3.
• Security problems can follow. One executive said an AI agent touched his production database (a live database that runs a business’s real operations) without warning 4.
• Schools are adjusting. Some computer science programs now lean on oral defenses so students can explain and justify code produced with AI support 3.