It's possible for something to be overpriced to the customer and simultaneously underpriced for the business to be profitable. Theoretically speaking, they could just be selling such an inefficient product.
AMD would love to come by and plop one of these into your datacenters: https://www.amd.com/en/products/accelerators/instinct/mi400..... Also, in a few generation, there will be a massive glut of used hardware.
Unless frontier labs can surpass the current models significantly I don't know why I would pay them money instead of hosting K3.
Also see: childcare, healthcare, many forms of public transport and social infrastructure. Some things markets simply cannot deliver well, and that's okay.
Daycare is the most easily reachable example because it's quite simple compared to the others. Daycare workers are simultaneously some of the lowest paid workers in the US, yet daycare costs are famously high and prohibitive, yet childcare centres are very far from money-printing machines. Margins in the daycare sector are most commonly < 1%.