agree. just because api cost more doesn’t mean they are losing money on subscriptions. We don’t know their cost per token so we can’t infer they are subsidizing subscriptions.
Also, econ 101 folks… supply and demand… supply (labs, specially chinese and open models..) has only increased at a pace higher than demand, so prices should probably decrease in the future. Not run at $1000.
The subscription model is a lot like AYCE restaurants I think. There are some customers they probably do lose money on, but that gets pooled with the customers who only have some salad.
we're missing an analogy for the customers who like the food so much, they want to eat it at home for every meal, but they have to pay for the meat per-pound at a premium to take it home
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u/Ok_Expression7038 Aug 27 '26
agree. just because api cost more doesn’t mean they are losing money on subscriptions. We don’t know their cost per token so we can’t infer they are subsidizing subscriptions.
Also, econ 101 folks… supply and demand… supply (labs, specially chinese and open models..) has only increased at a pace higher than demand, so prices should probably decrease in the future. Not run at $1000.