People keep saying this, but inference itself is not what is being subsidized. The expense for electricity/hardware/datacenter operations/etc for an inference token is less than what they charge for it, so that cost doesn’t HAVE to go up to be profitable.

The thing that is being subsidized is the TRAINING costs, and that is because they aren’t selling enough tokens yet to pay for the training costs. This is just like most other growth businesses, though, and if enough people use enough inference, it can be self sustaining.