This is hotly debated and completely unclear. Let's say Anthropics Opus models cost the same to serve as GLM 5.2. GLM 5.2 is 4.4$/MTok while Opus is 5.6 times more expensive. Assume that GLM 5.2 is served at essentially zero margin. Then Anthropic has >80% margin on API pricing. So even if an average person with a subscription pays only 20% of the API price of their usage, Anthropic makes money on subscriptions.

And the real numbers could be better for Anthropic. It's feasible Opus models are actually cheaper to serve than GLM 5.2 because Anthropic have optimized the hell out of inference.

Sure, but then why wouldn’t I use GLM 5.2 at cost or K3?

I guess that’s the big question, will people pay a big margin long term to use their end products / models or will AI tokens be commoditized by many competing players. For coding if I had to pay API costs I’d switch in a heartbeat, enterprise maybe more reluctant?