> closed sourced model pricing has no relationship to its size.
That's too strong. Only in an actual monopoly for a product with no substitutes that has price inelastic demand can pricing fully disconnect from costs. Frontier model serving is only maybe a soft version of that, where costs and moat both contribute to pricing.
sure, but my point is that supply and demand are what determines pricing, not cost to serve. its like thinking that because something costs $1 to make, its not possible for a company to sell it for $10, or that becuase they are selling something for $10, it must cost them $9 to make.