AI Model Costs Plummet as New Low‑Cost APIs and Mega‑Scale Compute Hubs Redefine the Market
Key developments: The price of running a GPT‑3.5‑level model dropped from $20 per million tokens in late 2022 to just $0.07 by October 2024—a 280‑fold decline, according to Stanford’s 2025 AI Index. This deflation continues today, with the cheapest production…
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