I fail to see what advantage they're getting from subsidising users for the meanwhile, and I definitely agree, these cloud AI solutions are subsidised.

Still the value gets worse for these cloud models all I have to do if I'm using say VScode is install a different extension and configure a few settings and bob's your uncle I'm using a different AI. What benefit exactly do companies get from blowing hundreds of dollars subsidising my usage again? Where's the moat? Where's the lock-in?