You can still find honest companies providing correctly priced services. Purelymail.com handles my email. There are many VPS hostars, cloud storage providers etc with honest pricing.
To attract users :)
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The question is probably more: How can it be legal to offer a service without specifying exactly what you're getting?
This is not limited to tech companies!
Underpricing is a very often applied method to enter/grow/develop a market.
Nothing is priced according to what they really cost. Things are priced at what the market will bear based on supply and demand. You might as well ask this question for oil, iphones, bitcoin, restaurants, or housing the answer is all the same.
I have been paying the same for my Kagi subscription since the start
When a new restaurant opens in a college town, there will often be things like an opening day where everyone with a student card gets a free taco or whatever. Cheaper than buying a physical ad at the football stadium, and targets the people that might end up eating there multiple times a week (developers bringing Claude to their companies) rather than a bunch of people just in town for the game (Claude TV ads).
The training data flywheel though was probably as or even more important at least as of whenever it was that they switched it to opt out instead of opt in on subsidized subscriptions.
Right, and while you are getting your free taco you can probably ask for a copy of the menu so you can know if you are able to afford it
One thing is offering free demos or discounted products for a short time and a different one is making your consumers believe that the current price is the long term price.
I just want transparency. Are they done increasing prices?