It's cheaper than the ELECTRICITY cost of running a llama-70 on your own M1.Max (very energy efficient chip) assuming free hardware.
I guess they are also getting a pretty good cache hit rate - there are only so many questions people ask at scale. But still, it's dumping.
I just don't see it.
They have lots of money now and the market lead. They want to keep the lead and some extra electricity and hardware costs are surely worth it for them, if it keeps the competition from getting traction.