Harvey experienced a dramatic swing in its gross margin, dropping from around 50% at the beginning of the year to negative 50% by June due to a surge in customer use of its AI agents. The margin only rebounded after Harvey launched its own AI model built on Moonshot’s Kimi K3. Other startups like Abridge, Decagon, Ramp, and Rogo are adopting similar strategies, while investors such as Sequoia are closely watching these developments.
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