[yobbo]

> We can assume they are doing so at a profit

This is false. We may assume it's the most efficient way of generating revenue given their GPUs, but their overall profitability will just be a guess. They would still have incentives to run hardware at maximum, even when it's uncertain to eventually recoup costs.

> a world where those API prices aren't profitable

A lab with employees and models in training has other costs than the operating expenses of a GPU farm.

[aurareturn]

Why would a company sell inference on Openrouter if they're not profitable? Except for Grog/Cerebras and a few other hardware companies looking to showcase their new chips.

If they're losing money and have no VC backing, they'd just turn off the lights.

[financltravsty]

The actual inference is operated at a 95%+ margin.