Subsidized from a capex perspective maybe, but the profit margins for API-priced inference tokens are likely very high.
Also, a lot of people get stuck on the idea that the main use case of LLMs is to generate more production code. I don't see it like that at all anymore. It's just as useful or even more useful as a problem-solving partner, generating throw-away prototypes, conducting experiments, verifying assumptions against code and documentation, performing one-off UI or smoke testing.