Anthropic just announced it's on track to have its first profitable quarter: https://www.wsj.com/tech/ai/mind-blowing-growth-is-about-to-...

Serving the API is profitable. They are unprofitable because of R&D (and maybe subscription costs?). If they can continue to find access to R&D capital, there is space to reduce API costs.

They may not be able to! It's pretty widely acknowledged, for example, that if there's some surprising plateau hiding around the corner they're both going to fail. But that could mean that they're overcharging for AI usage to get research money and sustainable rates are lower rather than higher.

There is no moat until a company achieves RSI and/or AGI, and the one that does succeed in moat-making will do so by hacking into and destroying their competitor's infrastructure.

Once moat is achieved, you don't have to compete on price. Of course it'll be academic because the AI will probably destroy all of us.