Winners and losers in the coming AI margin collapse (part 2)

This is the second article in a two part series focusing on what I believe is perhaps the least understood upcoming shift in AI economics. If you haven't read it yet, I'd recommend starting with part one. As always, if you enjoy my writing I'd love it if you subscribe to my newsletter or RSS feed. As always a week is a long time in AI. In the previous article I discussed the impact of "good enough" models for many agentic workflows - focusing on GLM5.2. In the brief spell of time since I wrote that, Grok 4.5 was released with similar capabilities and is also aggressively priced, which strongly hints at a glut of similar quality models coming out. Your margin is my opportunity This is one of Bezos's most famous quotes, and for good reason. It illustrates the dynamic in highly competitive markets - any margin becomes a weakness that others can exploit. I think Grok 4.5's aggressive pricing - at $6/MTok output, it's being offered at a similar cost to hosted GLM5.2 - shows this up. While…