AI performance costs drop faster than any previous tech
Epoch AI, a research organization tracking AI trends, reports that the cost of reaching a fixed level of performance on select benchmarks has dropped by about 47% per quarter since 2023. This is an average rate of decline, and Epoch suggests this figure does not reflect progress in pure algorithmic efficiency or real-world productivity costs. MIT researchers using pricing data from Artificial…
Key points
- AI performance costs have dropped by about 47% per quarter since 2023
- Epoch AI's analysis suggests this does not reflect pure algorithmic efficiency gains
- MIT researchers found similar trends but with slightly lower annual reduction in cost attributed to algorithmic gains (about 3x per year)
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AI performance costs are falling faster than those of any previous technology
The Decoder · 24 September 2026
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This text was published by The Decoder and written by Manuel Uth. It is reproduced here with attribution so you can read it in full; the rights remain with the publisher. Read it at the source ↗
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