The Price of Intelligence Is Falling Rapidly
Epoch AI finds a given AI performance level became about 47% cheaper per quarter, roughly 13-fold yearly.
An Epoch AI report by Emberson and Roodman, discussed by Marginal Revolution, finds the cost of a given level of AI performance fell about 47% per quarter over three years, roughly a 13-fold annual drop. OpenAI o3 cost about $0.30 per question to reach 75% on GPQA Diamond in January 2025, while GPT-5.6 Luna reached a similar score for about $0.0004 in mid-2026. That is roughly a 725-fold decline in under 18 months. The commentary argues frontier models are becoming both more capable and much cheaper to run at a fixed performance level.
58