AI performance costs are falling faster than those of any previous technology

Research from Epoch AI indicates that the cost of reaching specific benchmark performance levels for artificial intelligence is dropping by roughly 13 times annually. While hardware efficiency and market competition contribute to this trend, MIT researchers estimate that underlying algorithmic improvements alone drive a threefold annual reduction in costs. Although these figures highlight significant progress in software efficiency, they do not necessarily mean that the most advanced models currently on the market are becoming cheaper to deploy.