AI Is Getting Cheaper Faster Than Any Technology In History
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AI Is Getting Cheaper Faster Than Any Technology In History
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Summary Report
Epoch AI finds AI costs at fixed performance falling 47% a quarter, faster than any transformative technology, while major model releases now land every 18 days.
- 01. Cost at fixed performance down ~47% per quarter since 2023: 4x faster than DNA sequencing, 6x compute, 18x lithium batteries
- 02. o3 at $0.30 per GPQA question in January 2025 vs GPT-5.6 Luna at $0.0004 eighteen months later; releases every 18 days in 2026 vs 73 in 2023
Epoch AI calculates that at any fixed level of performance, the cost of AI has fallen about 47% a quarter since 2023, roughly thirteen-fold a year: four times faster than DNA sequencing, six times faster than compute and eighteen times faster than lithium batteries. In January 2025 o3 scored 75% on GPQA at 30 cents a question; eighteen months later GPT-5.6 Luna matched it for four hundredths of a cent. Meanwhile the gap between major model releases has shrunk from 73 days in 2023 to 18 in 2026.
