The price of AI is crashing faster than the rate of Moore's Law, report suggests

What happened

This raises serious questions about the need to retain access to frontier capabilities, when they show up elsewhere so swiftly. The price of AI "intelligence," has fallen dramatically in recent years, faster than any other transformational technology in history according to some estimates.

A new report from AI research firm Epoch AI suggests the price of artificial intelligence has fallen by thousands of times in recent years — faster than any other transformational technology in the past century. The report suggests that the cost of artificial intelligence is just under 50% cheaper every quarter, and 13 times cheaper per year.

That poses a difficult conundrum for labs like OpenAI and Anthropic, which are racing towards ever greater AI capabilities. As the report suggests, finding large profits even with advanced models that outstrip the competition is difficult to imagine when it may only be a fleeting advantage.