@davidgerard
The fun thing here is that training costs are very large, but mostly fixed NRE, whereas inference is OpEx that scales with userbase size. If you keep the prices low, you get more customers and so can amortise the NRE, but you can’t cover your OpEx, so you make a loss. If you put the prices up, you can cover the OpEx, but it pushes customers away and so reduces the amortisation of the NRE and so you can no longer cover it and make a loss.
Successful products have either low NRE or low OpEx to deliver. High NRE and low OpEx is ideal because it’s hard for competitors to enter the market but the early players can deliver cheaply. Low NRE and moderately high OpEx can work as long as the OpEx is less than customers are willing to pay, but usually precludes mass-market products unless economies of scale let you reduce the OpEx.
About the only places you find products with both high NRE and high OpEx are in the healthcare and defence sectors where demand is inelastic.