Comment by johnpaulkiser
Comment by johnpaulkiser 20 hours ago
This sounds like a stop loss? Are they losing money per token even through the api?
Comment by johnpaulkiser 20 hours ago
This sounds like a stop loss? Are they losing money per token even through the api?
I'm pretty sure everyone is pricing their APIs to break-even, maybe profit if people use caching properly (like GPT-5 can do if you mark the prompts properly)
Sounds plausible they're not really making any. Arbitrary and inflexible pricing policies aren't unusual, but it sounds easy enough for a new rapidly-growing company to let the account managers decide which companies they might have a chance of upselling 150 seat enterprise licenses to and just bill overage for everyone else...
Sure does.
I imagine a combination of stop loss and market share. If larger shops use up compute, you can't capture as many customers by headcount.
// There was a figure around o3, an astonishing model punching far above the weights (ahem) of models that came after, that suggested the thinkiest mode cost on the order of $3500 to do a deep research. Perhaps OpenAI can afford that, while Anthropic can't.