Author analyzes Kimi K3 token pricing costs

substack.hadley.nz5 min read

The author argues that current AI token prices reasonably reflect underlying server and operational costs rather than being artificially subsidized by venture capital. By analyzing open-market pricing and estimating the costs of self-hosting high-performance GPUs, colocation, and bandwidth, the analysis concludes that standard API prices leave room for healthy profit margins while subscription plans remain the primary site of provider subsidies. Open article →