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Comment by CuriouslyC

11 hours ago

Anthropic has indicated in the past that API gross margins are ~60%. This might have improved since then, though competition from OAI puts a ceiling on that.

Subscription inference can also be cheaper than the cost of API inference if the provider wants it to -- providers can do flexible scheduling for subscription inference for example, around API inference, to lower its cost and get better utilization of the hardware.