They basically don't exist in the currently most profitable LLM market (coding).

Yes, subs like codex are heavily subsidized. But API billing has massive margins and that's what enterprises pay.

Does it have "massive" margins? Afaik no one has said publicly what margins there are on an API call?

	▲	SyneRyder 35 minutes ago \| parent [-]
		"As of October [2025], OpenAI's compute margins reached 70%, up from 52% at the end of 2024 and double the rate in January 2024, [The Information] said, citing a person familiar with the figures." https://www.bloomberg.com/news/articles/2025-12-21/openai-se... As for Anthropic, the rumors I remember seeing for their API margins were more like 85-90%, but I don't have a reference at hand for those. But once you know the API is wildly profitable and the subscriptions are roughly break-even and not even a big slice of their income, all of the investment makes a lot more sense.