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The training costs are very likely the reason. Dario has talked about how each individual model is profitable, but how the expenditure training the next generation of models makes it look like they're not profitable at any given moment in time, and I believe he's being honest about that.

The market for open weight model hosting gives you an idea of the profitable price floor, it's pretty clear there's markup baked into OAI/Anthropic's APIs.

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If true then why are neither Anthropic or OpenAI dropping their API pricing

They are? In the before times of 2025, Opus 4.1 was $75 per million tokens. Opus 4.8 is $25, and Fable is/was $50.

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