What happens when LLM providers stop subsidising?

Reddit r/AI_Agents News

Summary

A developer shares their experience with AI inference costs after switching from subsidized OpenAI Codex to OpenRouter, prompting a discussion about the sustainability of current LLM pricing models and the potential shift towards open-source self-hosting.

i;m running **Hermes agent** and connected my OpenAI Codex for 2 months $20/month flat rate everything worked fine. last sunday i hit my weekly limit, due to i was using 5.5 with fast. that day i swapped provider to OpenRouter in Hermes for a day it costed me $18.7 doing the exact same tasks. that one day made me think. OpenAI, Anthropic, Google are all selling inference below cost right now. land-grab phase acquire devs, figure out margins later. when that changes: * side projects stop being affordable * agents making 500+ calls/day get expensive fast * small teams get priced out first we're building on pricing that was never meant to be permanent. open source models might be the hedge. self-hosting might become the default. what do you think when these companies stop subsidising. what will happen in IT industry?
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The Unsustainable Subsidy (1 minute read)

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An analysis of how Google, OpenAI, and Anthropic are adjusting their AI model pricing strategies as cash constraints and high capex spending drive price increases, ending the era of subsidized AI.