AI performance costs are falling faster than those of any previous technology

Epoch AI measures AI performance costs falling about 13x per year, while MIT puts annual algorithmic progress at roughly 3x after stripping out hardware gains and competition, according to The Decoder. The report notes that today's best models are not necessarily cheaper, since reasoning models can cost more by using far more compute per task. Quality, speed, and error rate matter as much as price when selecting a model for real-world use.

AI is hitting a fixed benchmark performance level at a rapidly falling cost. Epoch AI measures a price decline of about 13x per year. After stripping out hardware gains and competition, MIT puts annual algorithmic progress at about 3x. That doesn't mean today's best models are cheaper, though. Reasoning models, for example, can cost more because they use far more compute per task. When picking a model for real-world use, quality, speed, and error rate matter just as much as price. The article AI performance costs are falling faster than those of any previous technology https://the-decoder.com/ai-performance-costs-are-falling-faster-than-those-of-any-previous-technology/ appeared first on The Decoder https://the-decoder.com .