This is playbook taken from Amazon prime.

This massive price cut, I believe, is intended to undercut competing open source ChatGPT equivalent initiatives.

OpenAI/Micorsoft may be losing money with this new pricing, but that is on purpose. At these lower prices most of the OpenSource alternatives in the works will have difficult time continuing projects.

After few years, when most open source alternatives have died, OpenAI/Microsoft will gradually raise the prices.

This is the same strategy that Amazon Prime used for many years, losing money on shipping. Once the competition was eliminated, Amazon Prime prices steadily increased.