# AI performance costs have dropped about 47% per quarter, report finds

Digest AI · Generative AI & Models · published 2026-09-23T13:08:59Z · updated 2026-09-26T06:38:00Z

Canonical: https://digestai.news/story/ai-performance-costs-have-dropped-about-47-per-quarter-report-finds

## Summary

A new Epoch AI report by Emberson and Roodman says the cost of achieving a given level of AI performance has fallen an average of some 47% each quarter over the past three years, a 13‑fold drop per year. The authors compare OpenAI’s o3 model, which cost about $0.30 per question to reach 75% on GPQA Diamond in January 2025, with GPT‑5.6 Luna, which achieved the same score for roughly $0.0004 in mid‑2026 – a roughly 725‑fold decline in under 18 months.

The report argues that cheaper inference at a fixed performance level reduces the threat from open‑source models, because frontier models become not only smarter but also dramatically cheaper to run. This rapid cost decline is presented as faster than any other transformative technology in history.

## Key points

- Cost per performance level fell about 47% each quarter, a 13‑fold yearly drop, per the report.
- OpenAI o3 cost $0.30/question for 75% GPQA Diamond in Jan 2025; GPT‑5.6 Luna cost $0.0004 in mid‑2026.
- The 725‑fold cost reduction in under 18 months suggests cheaper inference for frontier models.

## Why it matters

Rapidly falling AI inference costs could lower barriers for developers and reduce competitive pressure from open‑source models, reshaping deployment economics across the industry.

## Sources

1. [The Price of Intelligence Is Falling Rapidly](https://marginalrevolution.com/marginalrevolution/2026/09/the-price-of-intelligence-is-falling.html) (marginalrevolution.com, 2026-09-23)
2. [Before Trying GPT-6 Astra, Compare It with Your Own Work | 3 Tasks with Answer Keys and an Adoption Decision Sheet](https://note.com/mio_change_26/n/n7d25e0dedc57?hl=en) (note.com, 2026-09-26)

Part of the developing story: [OpenAI Unveils GPT-6 Sol and Luna Models](https://digestai.news/thread/comparing-openai-models-on-aws-for-workload-efficiency) (6 stories)

## Cite

Digest AI, "AI performance costs have dropped about 47% per quarter, report finds", 23 September 2026, https://digestai.news/story/ai-performance-costs-have-dropped-about-47-per-quarter-report-finds

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