LLM API Hosting Margins Squeezed Dry: Kimi K3 Pricing Hits Cost Floor
sergeykarayev · x · 2026-08-13
Using the Kimi K3 model as an example, a developer highlights the economic realities of the current LLM API hosting market. They note that if there were more money to be made by hosting the model at average latency and throughput, API prices would drop below the current $3/M input and $15/M output tokens. However, margins have been entirely compressed as pricing hits the cost floor.
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