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AI costs
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- 16 OctZoho warns rising AI costs squeeze SaaS margins; pauses hiring and raises
Zoho cofounder Sridhar Vembu warned that rising server, model and token costs are increasing operating expenses for software companies, despite AI productivity gains. Zoho plans to cut marketing, freeze headcount for 18 months and pause its usual salary hikes as companies rethink AI adoption and pricing.
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