Everybody is subsidizing their prices.

But Flash is 1/8 the cost of sonnet and its not impressive?

Sure, for the launch. Until they start introducing ads, capping existing subscriptions and raising prices (on all products)

I think you are underestimating how much cheaper it is for Google to run the workloads compared to competitors. The hardware advantage is real.

Enshittification will begin eventually. Google already cut free limits on AI studio from 100 rpd to 10 rpd so they started cost savings already.

What does that have to do with what I said? Everyone knows that the companies are operating at a loss right now to capture market share in the hope that it's sticky. Google is losing far less money and will not need to get nearly as extreme with how they try to extra money from the product. That honestly makes me feel better about it's long term prospects. And who knows, maybe local llms will prevent it from getting truly bad anyways. Competition tends to keep product quality high.

> Everybody is subsidizing their prices.

Inference is profitable but model training needs lot of money.