This is entirely expected. The low prices of using LLMs early on was totally and completely unsustainable. The companies providing such services were (and still are) burning money by the truckload.

The hope is to get a big userbase who eventually become dependent on it for their workflow, then crank up the price until it finally becomes profitable.

The price for all models by all companies will continue to go up, and quickly.

I recently looked at this a bit but came away with the impression that at least on API pricing the models should be very profitable considering primarily the electricity cost.

Subscriptions and free plans are the thing that can easily burn money.