Business · 19h ago
AI Subscriptions Are Heavily Subsidized by Investors
SemiAnalysis found that a maxed-out ChatGPT Pro subscription would cost $14,000/month at API prices, but users pay only $200. OpenAI's margin goes negative when usage exceeds 5.7% of the limit. The losses are covered by venture capital betting on future pricing power.
Meridian48 take
The article correctly highlights the unsustainable unit economics, but it's worth noting that subsidies are common in tech and may eventually lead to higher prices or tiered usage limits.
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