Epoch AI measures a 13-fold annual decline in the cost of reaching fixed AI benchmark performance, while MIT estimates algorithmic progress alone at roughly 3x per year. Reasoning models can still be expensive, and quality, speed, and error rates matter as much as price.
AI Performance Costs Fall Faster Than Any Previous Technology
Epoch AI measures a 13-fold annual decline in the cost of reaching fixed AI benchmark performance, while MIT estimates algorithmic progress alone at roughly 3x per year. Reasoning models can still be expensive, and quality, speed, and error rates matter as much as price.
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