alt Hacker NewsMy impression is that individual subscriptions are the loss leading hook. The money is made on Enterprise token contracts.
Employees and students used to coding with thousands of dollars worth of tokens (on a 20/100 dollar plan) will push enterprise to spend.
Having a Chinese model that is competitive won't displace this enterprise spend. But an open model hosted in the US/EU might.
The existence of GLM 5.2 puts a ceiling on how much OpenAI/Anthropic can charge for API Access.
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> The existence of GLM 5.2 puts a ceiling on how much OpenAI/Anthropic can charge for API Access.
I believe this is the reason why we can even have this debate. Without this kind of competition we would not have these subsidies.
To be clear, I agree with this and they have my unlimited support pushing for relevance of open source models. GLM 5.2 is amazing and I couldn't be more excited.
I just think that as of today, most people will not find a good reason to switch to GLM.
> My impression is that individual subscriptions are the loss leading hook
Except there is no evidence of this at all, just people comparing API and subscription pricing. The leaked financial info for OpenAI shows inference is profitable right now, though it does not show a distinction between subscription and API revenue... but if subscription revenue was so lossy, it would hard for total inference to still be profitable.