For every $100 in AI model company revenue, about $35 to $40 flows directly into the pockets of the three major cloud players—AWS, Azure, and GCP—as inference costs.
The latest Barclays report makes that quite clear. Cloud providers retain about $10 to $20 in operating profit, equivalent to a 35–45% margin. Meanwhile, the paid inference segment of the AI labs has surged from low double digits in 2025 to 50–65% or higher in 2026; adjusted gross margin has increased by 30 to 50 percentage points versus the same period. $NVDA.US It sounds like the labs are making a killing. In reality, most of the money still has to be paid to compute providers. Barclays also expects this high margin to gradually decline as competition among models increases and compute supply loosens. $TRIA
Anyone building models still has to pay for the infrastructure. Those who own the cloud sit more steadily collecting revenue.$CYS
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