I don't think inference is subsidized, it's the training. So what happens is, there's no new models anymore or are released slower.
replyAPI inference is probably not subsidized. Coding plans absolutely are.
replyGood distinction. The demand is partially driven by the low costs, which are only low because the major providers are losing money.
replyThere is no evidence they are losing money on inference, though?
replyAlso if they are keeping the price low because they want to gain market share and reduce the competitiveness of Chinese models they won't be able to raise prices without providers serving open models (at cost + low margin) severely undercutting them.