The plunging price of thought
TLDR ● Covered by 7 sources
The issue reports that the cost of achieving a given level of AI performance has dropped about 47% per quarter over the past three years. The article argues that cheaper AI can lead to higher total spending by enabling more agents, while harder tasks still get more expensive even as capability improves. As a result, organizations may spend more overall and allocate more budget toward difficult work rather than only optimizing per-call price.
Why it matters
The issue reports that the cost of a given level of AI performance has fallen about 47% per quarter over the past three years. It argues that lower prices can still mean higher overall spending via more agents, while the price of harder tasks rises even as AI capability improves.