That doesn’t mean that the subscription itself is losing money. The margin on the subscription could be fine, but by using that margin to R&D the next model, the org may still be intentionally unprofitable. It’s their investment/growth strategy, not an indictment of their pricing strategy.
They have investors that paid for training of these models too. It could be argued that R&D for the next generation is a separate issue, but they need to provide a return on the R&D in this generation to stay in business.
That doesn’t mean that the subscription itself is losing money. The margin on the subscription could be fine, but by using that margin to R&D the next model, the org may still be intentionally unprofitable. It’s their investment/growth strategy, not an indictment of their pricing strategy.
They have investors that paid for training of these models too. It could be argued that R&D for the next generation is a separate issue, but they need to provide a return on the R&D in this generation to stay in business.
The return of R&D can just be an inflated valuation, there's no immediate need to make actual money.