They sure aren't making any money selling a card with a 406mm² die on TSMC 6nm for $200, given there's a lot more to consider than raw component prices even without factoring in R&D and startup costs. Even the original MSRPs were much lower than Intel had planned. Their own leaked slides from 2021 had the A770 competing with and priced to just undercut the (at the time) $500 3070. They had to knock $150 off that in the end thanks to the shabby drivers and missed performance targets. Intel have sold at a loss plenty of times in the past to gain market share in new areas. They spent $7bn in two years flooding the market with cheap Atom tablets in a desperate, failed attempt to try and compete with Apple and ARM. I don't think Pat Gelsinger's Intel is remotely the same company in that respect, but that's also why there's been a lot of nervous talk about whether Arc is something that'll survive his cost-cutting initiatives.