LLM monsters are deeply unprofitable, going by the industry hearsay (which is the only thing we have, given ultra secrecy of the LLM corporations). The only two LLM companies which disclosed their finances without lies, were two Chinese corporations and they, unsurprisingly, were deeply in red.
Remember the old saying about boiling a frog? LLM corporations need to make most of their users pay hundreds per month, asap. This is Anthropic increasing temperature regulator under the pot just a tiny little bit. Not the first and not the last time.
I assume the Chinese corporations can operate in the red forever and be subsidized by the Chinese government.
Their price point goal is a SWE salary.