Historically applied analytics companies have lower moats, more professional services and lower gross margins than pure software. Palantir might be the quintessential company in this category but also Datarobot and it’s ilk.

It will be interesting to see if LLMs change this pattern. If having a corpus of expertly curated training data is sufficient then they’ll get better operating leverage than those firms. But my expectation is they’ll spend a lot of time building use-case-specific wrappers that don’t really scale.