They are and they are convinced the cost is not truly baked in because you need to factor in all the training and R&D. It’s a mixture of folks that 1) are convinced AI is terrible, 2) hate Sam Altman and 3) don’t understand how business price products.

We don’t have clear evidence either way but it heavily leans to API pricing at least covering inference cost. Models these days have less and less differentiation and for API use there must be some thought to compete on cost but it’s not going to be winner take all. They leap frog each other with each new model.