their moat is leaky because llm prices will be dropping forever and the only via... | Hacker News

Hacker Newsnew | past | comments | ask | show | jobs | submit

		seydor 3 months ago \| parent \| context \| favorite \| on: OpenAI dropped the price of o3 by 80% their moat is leaky because llm prices will be dropping forever and the only viable model will be a free model. Eventually everyone will catch up. Plus there is the thing that "thinking models" can't really solve complex tasks / aren't really as good as they are believed to be .

Zaheer 3 months ago [–]

I would wager most of their revenue is from the subscriptions - both consumer and business. That pricing is detached from the API pricing. The heavy emphasis on applications more recently is because they realize this as well.

Consider applying for YC's Winter 2026 batch! Applications are open till Nov 10
Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact