AI Costs Are Falling Faster Than Any Technology

Notes

This is such an enormous deal. @OpenAI 's new Luna is a testimate to this.

Claude Opus 4.5 hasn't even been out for a year!

Epoch AI@EpochAIResearch

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.

Epoch AI chart of price declines where AI falls a million-fold in 5 years, far faster than DNA sequencing and compute