Dhruv Rathee’s AI Fiesta Limits and Business Model Explained

AI Fiesta has taken Indian users by storm. This new venture by YouTuber and social media influencer Dhruv Rathee brings together top AI models like ChatGPT, Gemini, Claude, Grok, Perplexity, and DeepSeek for just ₹999 per month. Now many are interested to know what’s the business model behind this startup? How Dhruv will make money from this platform? Will there be any profit or it will be a complete failure? Let’s go deep into the math of money and find all answers below.

How will Dhruv Rathee earn? Understand the token economy

The secret of AI Fiesta’s real earnings lies in “token management”. Every user gets a shared pool of 4 lakh tokens per month at price of $12, which he can spend on any AI model. This means 1000 token cost around $0.03. But the real fun comes when we compare the cost and sale of tokens.

To give an idea, below is the screenshot that gives a complete detail on the current input + output cost per 1000 tokens for AI models like ChatGPT 5, Gemini Pro 2.5, Claude 4 Sonnet, Grok 4 (Grok 5), and Deepseek R1.

Ai Fiesta Business Model - Token cost by all top Ai models like Chatgpt, Claude AI, Grok, Gemini Pro

According to expert calculations, if a user uses all AI tools at full capacity, then his total cost (input + output tokens) comes to around $0.059 (approximately ₹5). This is less than $0.06 ($0.03 for input and $0.03 for output) and still there will be minor profit or no profit no loss situation.

But the trick here is that most users do not run all AI tools at full capacity simultaneously. If a user uses only 2-3 AI models, then the cost of tokens comes down to $0.029-$0.04 (₹2.5-₹3). In this case, the profit reaches 40-50% and if some users don’t consume all tokens, then there will be 5-7% extra profit other than avg/standard profit.

In short, AI Fiesta charges $12 (₹999) from the user and offers 4 lakh tokens. Behind the scene, Rathee gets all these tokens only at half price around $6 and rest $6 is the margin aka the profit. Or if i go in more depth, the sellers will bill Rathee for consumed tokens only… and if a group of users or some users are unable to consume 4 lakh tokens then here Rathee will make extra profit which I shared above (the 5-7% extra profit).

10,000 users = Rs 40 lakh monthly profit?

If AI Fiesta adds 10,000 paid users in the first month, Dhruv Rathee’s earnings math will be something like this:

  • Average cost per user: ₹600 (token payment to AI companies)
  • Revenue per user: ₹999
  • Profit per user: ₹399
  • Total monthly profit (on 10,000 users): ≈₹40 lakh

If the user base grows to 50,000-1,00,000, the profit can reach Rs 2-5 crore per month. However, this will include server and maintenance costs –  As per my research, the aifiesta.ai is made on node js and using mongo db to save users data. To handle all these active users… a dedicated server with dedicated IP is required, means the infra cost of this platform is around  ₹25,000-₹32,000 per month which is negligible compared to the total earnings.

User complaints: What are the problems?

While the AI Fiesta model is generating profits for Rathee, there have been several problems that users are facing on Ai Fiesta and they have shared about these on social media platforms like X, Reddit etc:

Token limit runs out quickly: Many users reported that the 4 lakh tokens run out in 7-10 days for heavy users, especially if they are using advanced models like GPT-5 or Claude 4 Sonnet.

Use of older models: AI Fiesta is offering older models (like GPT-4) instead of the latest versions like GPT-5 or Gemini Ultra, without any clear marketing details.

Non-refundable policy: Users have to pay ₹999 upfront without a trial, and if they don’t like the service, they don’t get a refund.

Speed and glitches: Some users are facing slow responses and technical glitches, but it looks it will be sorted soon as the platform is new and it is quite common for new startups as they don’t have any idea how many people will onboard!

Is this business model sustainable?

At present, the model of AI Fiesta is beneficial for small users (who use only 1-2 lakh tokens in a month). But it can be expensive for heavy users (developers, content creators), as there is no option to buy additional tokens.

If Rathee improves user complaints and introduces better token management, new models and flexible plans, then this business can become a big player in India’s AI market. Otherwise, competitors (like JioAI, Ola Krutrim) will soon come up with better offers in this space.

Dhruv Rathee has created a smart pricing strategy by understanding India’s AI adoption curve, but this model will only survive if:

  • ✅ Token allocation is made dynamic (e.g. Basic plan 2 lakh tokens/month @ ₹499)
  • ✅ Add “Pay-as-you-go” option for heavy users
  • ✅ Offer more options like voice support, video generation features,  get refund for unused token, community support etc!

If these steps are not taken, AI Fiesta will just be a short-term cash cove instead of becoming “India’s HubSpot AI platform”. The golden rule of survival in the AI market is – “Give value to users, they will give you valuation.”

Dhruv Sharma
Dhruv Sharmahttps://gadgetsloud.com/
Hi, I am Dhruv Sharma founder of gadgetsloud.com. I am a learner, an explorer and also good food lover. I like to blog since 2010. I am working as an engineer in a normal IT based company (scary job). I love to code and blog all the time. I am a web developer and also SEO learner. I learned many great stuff about blogging and SEO and believe me this blogging stuff is all time great thing that I did ever.

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