September 22, 2026
Third-party models ate into Harvey's margin: costs exceeded revenue by June
Harvey, valued at $15.6 billion, saw its gross margin fall from 50% to −50% by June 2026, Bloomberg reported, citing a source familiar with the matter. Spending on third-party AI models exceeded revenue from services. Harvey did not confirm the financial figures, but reported 20-fold growth in token traffic over the year.
Harvey previously bought models from external providers and paid for long answers and tool calls. On August 20, the company released Tenet, Harvey's first open-weights model, fine-tuned with Fireworks Research on Kimi K3 for multi-step legal work. By Harvey's estimate, Tenet handles nearly twice as many deferred LAB tasks and 20% more LAB Contracts tasks than the base Kimi K3.
Less wasted work. During fine-tuning, Harvey rewarded the model for calling tools less often and spending fewer tokens on reasoning without losing quality. For Maxim, this marks a shift from choosing the smartest external model to controlling the cost of each agent run.
Full Kimi K3 weights are now available for self-hosting.
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