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by dminik 20 days ago
Without actual data I don't know. My gut feeling is that they overall lose money on subscriptions (and especially the free tier that accounts for 95% of all users). And make thin profit (~5%) on API pricing.

But it's just that. A gut feeling.

2 comments

I don’t think it’s a gut feeling. It seems to be the consensus that subscriptions are still heavily subsidized
its well reported that inference margins on api pricing are 30-50%
No it's not. It's well speculated. Can you give a single source that says they have a 50% margin on inference?