Here is a trend I'm noticing: - GPT-5 mini costs $0.25/$2 and will be discontinued in December. - GPT-5.4 mini costs $0.75/$4.5 and is supposed to be the replacement. - GPT-5.4 nano costs $0.2/$1.25 and, while it ranks better in benchmarks than GPT-5 mini, it's not even close when you test it in real scenarios. So you're left being forced to go to GPT 5.4 mini if you use 5 mini today. The same thing is happening here…
All the analysis I have seen points to frontier models being profitable to serve. It’s using 50% or more of your GPUs for research plus CapEx for capacity expansion that makes these businesses so heavily cash-negative.
What you are observing is downstream of another detail. It gets more expensive to serve a model as utilization goes down. Plus the opportunity cost vs newer, more-profitable models.
There are plenty of valid reasons to critique here. “OpenAI is lying about this being a sustainable price to serve” is not one of them.