Category: AI pricing

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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Anthropic and OpenAI Slash AI Model Prices, Fueling a New Era of Low‑Cost Intelligent Apps

Key developments: Anthropic unveiled Claude Haiku 5.5, pricing input at $0.10 and output at $0.50 per million tokens—around 75% cheaper than its previous Haiku version and directly matching OpenAI’s new GPT‑6 Luna rates. The company also halved its Sonnet 5.5 cache…

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