I make 340Tbit/sec about 1.1x10^11 GiByte/month. GCP premium tier networking is priced at $0.08/GB, so at 80% load that cable would, very naively, have the potential to bring in $7B/month in revenue. I'm sure they only take in a fraction of that, and their costs are substantial. But even so... cloud bandwidth is overpriced.
You’re thinking about average throughput, while these cables need to be provisioned for max throughput, which can be completely different. Having said that, cloud bandwidth is indeed overpriced; but at the same time, given that Google Cloud is still burning money, can it perhaps be argued that bandwidth is one of the money makers that allow for other services to be free? I recall that from the old webhosting days, th…
Resources are used depending on prices. If the costs for providing bandwidth are low and everything else is expensive, but the prices are the other way round, then the economy optimizes to waste resources. That's not sustainable.