My understanding was that OpenAI couldn't make money at their previous price point, and I don't think operation and training cost have gone down sufficiently to make up for those short comings. So how are they going to make money by lowering the price by 80%?

I get the point is to be the last man standing, and poaching customers by lowering the price, and perhaps attract a few people who wouldn't have bought a subscription at the higher price. I just question how long investors can justify pouring money into OpenAI. OpenAI is also the poster child for modern AI, so if they fail the market will react badly.

Mostly I don't understand Silicon Valley venture capital, but dumping price, making wild purchases for investor money and mostly only leading on branding, why isn't this a sign that OpenAI is failing?