Usage costs will come down with better hardware. Hardware is improving rapidly each generation.

eikenberry an hour ago | parent | next [-]

Costs will plummet as better hardware becomes available and priced reasonable so that people can more easily run their own open models locally. But that won't help Antropic/OpenAI make more money, quite the opposite.

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simonw 3 hours ago | parent | prev [-]

That trend held true for the past three years, but it doesn't feel as safe to me now.

But memory costs are going way up. And both OpenAI and Anthropic bumped up the price of their frontier models in April.

	▲	brokencode 2 hours ago \| parent \| next [-]
		Yeah, it’s called supply and demand. Demand for memory went way up suddenly. Now supply is going up rapidly as companies try to cash in on that demand. Supply will eventually catch up with demand. Then the prices will come back down.
	▲	StrauXX 3 hours ago \| parent \| prev [-]
		Algorithms are also improving. I believe it's very unlikely for these two improvements together to not result in one to two orders of magnitude cheaper cost per "intelligence". Of course, that might just make use cases that are too expensive today viable and thereby increase usage further.