Costs are decreasing due to technological advancements, increased model efficiency, and the availability of smaller, more specialized models.
Large frontier models remain expensive, but costs for powerful yet cost-effective models have dropped significantly, and there’s no reason to believe this trend won’t continue.
Specific reasons for cost reduction:
- Smaller, More Efficient Models
- Improved Training and Hardware
- Mixture of Experts (MoE) Architecture
- Specialization
Evidence of cost declines include: price drops, cost-effective edge deployments, commoditization of core capabilities.
Large frontier models remain expensive, but costs for powerful yet cost-effective models have dropped significantly, and there’s no reason to believe this trend won’t continue.
Specific reasons for cost reduction:
- Smaller, More Efficient Models
- Improved Training and Hardware
- Mixture of Experts (MoE) Architecture
- Specialization
Evidence of cost declines include: price drops, cost-effective edge deployments, commoditization of core capabilities.