AI Unit Economics: Burn Rate and Technical Insolvency
Technical insolvency happens when variable AI model costs exceed customer subscription revenue. Exogram acts as an automatic circuit breaker that keeps API costs strictly below gross margin thresholds.
Technical insolvency describes the financial state when variable AI model inference costs cross customer subscription gross margin contribution thresholds. As AI usage scales faster than recurring revenue, un-governed AI SaaS platforms burn cash. Exogram provides sub-millisecond semantic caching and tenant token tracking to maintain positive unit economics.
Understanding the Technical Insolvency Date
In traditional SaaS, acquiring more users increases gross profits because hosting costs are negligible. In AI SaaS, heavy power users can consume thousands of dollars in LLM API tokens, turning profitable customer accounts negative.
How Exogram Protects Unit Margins
Exogram tracks per-tenant token consumption in real-time. By combining semantic caching at the edge with dynamic model offloading, Exogram ensures that your API costs never exceed your subscription margin limits.
Key Metrics for CFOs:
- Inference COGS: Measure variable LLM token spend as a percentage of revenue.
- Per-Tenant Token Limits: Enforce tenant-level execution budgets at runtime.
- Marginal Contribution Margin: Protect positive gross margins as user volume grows.