Harvey’s Margins, Are Insects Worth More Than Humans?, Meta Tests Human Help for Muse | Diet TBPN

Harvey's negative-to-positive gross margin swing shows AI application-layer economics are volatile but fixable via model routing and fine-tuning.

• Harvey's margin swing: Gross margins fell from ~50% to -50% by June as agent/reasoning token use rose 20x on rented OpenAI/Anthropic models, then recovered to positive within a quarter via routing, harness improvements, and a fine-tuned open-weight model ("Harvey Fine-Tune").
• Founder pushback: Harvey's founder said they chose to protect customers with frontier models rather than force consumption pricing early, while Legora's Max argued in-house model training is a bad bet given falling frontier model costs.

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