Why are traditional SaaS investors vulnerable to severe margin compression in the era of generative AI?

For fifteen years, software companies enjoyed eighty to ninety percent gross margins because marginal compute and hosting costs were virtually zero. Generative AI fundamentally destroys zero-marginal-cost software economics because every user action, API call, and reasoning token consumes expensive GPU compute and electricity. Software vendors that cannot capture immense enterprise workflow value will watch their margins evaporate.