Deepseek's model price is sustainable, since it's open weight, third parties can run it at cheaper than the official API rate. Luna was massively re-engineered by Sol for efficiencies and they slashed the original pricing by 80%.

All API pricing for these models is extremely profitable, typically 70-90% margins. The part that's unsustainable is subscription pricing if everyone maxes out their subscription. OpenAI has the distinct advantage of having the most casual users with ChatGPT Work, who are actively subsidizing developers that max out their sub every week. They added another 5 million users last week, which went from 10 million to 15 million. I believe Tibo mentioned the vast majority of that is ChatGPT Work users.

We are so, so lucky that Open Weight models like Deepseek exist. They are the only reason that AI is sustainable even if these companies all go bankrupt.

Only if you ignore all the capex that is ongoing and worsening. Also, if you ignore the circular financial backing.