The subscription plans are a huge money sink, that obviously will have to go away or be priced at a ridiculous level to make sense.
The cost of providing the tokens for a heavy user (and let's be frank, the people paying $200 are likely heavy users) is many, many times more than the $200 recurring revenue they generate.
Deepseek has low prices and despite that their profit margin at the beginning of this year was a whooping 82.9%. Since then, they have significantly raised prices.
You can actually check the approx. financials of OpenAI and Anthropic. The growth is insane.
There is no reason to believe why OAI/Anthropic wouldn't have a much better profit margin than DS, taking into account a much higher prices.
> Deepseek has low prices and despite that their profit margin at the beginning of this year was a whooping 82.9%. Since then, they have significantly raised prices.
DeepSeek increased prices substantially not long ago. I find their profit margins hard to inspect considering I have very little idea what sort of environment they may get in China (from cheaper energy to government subsidies). I honestly doubt you have any insight here as well.
> You can actually check the approx. financials of OpenAI and Anthropic.
No you can't. They are not publicly traded, and they constantly and selectively leak bullshit metrics, from extremely unclear ARR, to extremely deceiving EBITDA. You willingly eat their bullshit and call me a picky eater in return.
> There is no reason to believe why OAI/Anthropic wouldn't have a much better profit margin than DS, taking into account a much higher prices.
I see no reason to believe (much less any actual evidence) that OAI or Anthropic have any path to profitability.
If inference (particularly for subscriptions) was in anyway as profitable as you claim today, they wouldn't need private investment rounds like crazy nor they would be desperate to offload this hot potato in an IPO.
82% margins lol. Are you telling me that if you created a machine that turns 1 dollar in 5 what you would do is dillute your ownership of the machine instead of using these fabulous profits to expand the business?
It's clear that you are out of your depth when it comes to financials, business economics or a simple "what it takes to run a business".
You need money to make money. Growth strategy vs. self-financing strategy, pros and cons, when to do each. Critical chain. Limiting factor in infrastructure. Will not expand because this already goes over your head.
I'm not the one out of my depth here.
Feel free to have the last word. I prefer to read idiocy in homeopatic doses.