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AI output costs plummet 47% quarterly as price war intensifies

Epoch reports AI output costs fell 47% quarterly over three years

2 Sep 22 5:58 PM · 1d ago · 1 article · 2 posts · 2 sources · development 2 of 2

Analysis of five AI performance benchmarks spanning mathematics, hard sciences, and game-based puzzles shows a 47% per-quarter cost decline for a given level of performance. The study highlights a 725-fold price drop in 18 months: OpenAI's o3 model (January 2025) achieved a 75% score on GPQA Diamond for 30 cents per question; GPT-5.6 Luna achieved the same score for $0.0004 per question. The authors note that initial performance breakthroughs command premium pricing before competition drives costs down.

Epoch reports AI output costs fell 47% quarterly over three years
epoch.ai

“No other general-purpose technology in history appears to have gotten so cheap so fast.”

Epoch analysis

Ross David Harthorn Neural networks researcherEpoch Research organizationOpenAI AI model developer

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1Researcher questions economics of AI…2Epoch reports AI output costs fell 47%…
Sep 18Sep 19Sep 20Sep 21Sep 22yesterdaynow · 12:59 AM ET

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  1. 1 outlet The AI Race Is Becoming A Price War

    first by WeRSM, 1d ago

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