GPT-4 level intelligence cost $30 per million tokens in 2023. The same capability now sells for under a cent. That's a 3,000x price collapse in three years, and it explains why smart investors keep funding AI apps that lose money on every user. Those negative gross margins are a timing bet. Epoch's data has cost at a fixed level of performance falling 47% per quarter, which means the main input cost of every AI product divides by roughly 12 each year. An app spending 120% of revenue on…

Epoch AI@EpochAIResearch1d ago

AI is getting cheaper more quickly than any other transformative tech in history. At a given level of performance, cost has fallen ~47%/quarter since 2023. That’s 4× faster than DNA sequencing, 6× faster than compute, 18× faster than lithium batteries, and (up to 1973) 54× faster than electricity.