Comment by insane_dreamer

4 days ago

Why is Grok so much cheaper than Claude or GPT?

The answer is simple: They're willing to burn money faster than the others.

Nobody's profitable in this space, they can price it however they want as long as investors keep pouring money in. And SpaceX just got a lot of money poured in.

He owns the DCs and isn’t scrambling for revenue to justify an upcoming IPO

Because the model is probably smaller. Go look at openrouter’s costs for other open models around this performance level, they’re similar.