[Youden]

I checked my usage and tend to use ~1200 searches per month. Kagi shows that of the money I spend, around 60% pays for my results, so it seems like Kagi is still profitable with the current pricing.

Presumably though, they don't see this as sustainable. I wonder why? What kind of margin are they looking for here?

[akotulski]

I think those costs take into account external API prices but not internal ones (such as employees, servers).

Moreover Bing increases pricing in May for their API and I guess they are trying to factor that in as well

[Incipient]

Bing pricing is more than doubling, so they'll be losing money on simply proxying your search requests, let alone everything else they do.