I assume that over time pricing will converge to cost of service provision plus a reasonable (50%?) profit margin. As long as the profit margin remains high the

I assume that over time pricing will converge to cost of service provision plus a reasonable (50%?) profit margin. As long as the profit margin remains high then it encourages more competition. Of course there is a large cost in building a SOTA model in the first place, maybe building your own datacenter(s) for inference too, but compare to something like semiconductor manufacturing where upfront costs are also very high, yet profit margins still reasonable, e.g. ~40% for TSMC who make chips for NVIDIA, AMD, Apple ... As long as there is a possibility of competition (primarily Samsung in this case), then profit margins will be held in check.