AI performance costs drop 47% per quarter, outpacing past tech
ai performance costs are falling 47% per quarter, or 13x per year, with epoch ai citing openai's o3 model as an example, dropping to 1/725 of its original price. this rapid decline affects ai adoption and industry pricing.
epoch ai finds ai performance costs dropping 47% per quarter, or 13x per year, since 2023, outpacing previous technologies. mit researchers estimate a 3x per year gain in algorithmic efficiency. openai's o3 model, for example, reached 75% on gpqa diamond at 30 cents per question in early 2025, and 18 months later, a gpt-5.6 family model achieved the same score for four hundredths of a cent. this rapid decline affects ai adoption, industry pricing, and the type of progress measured in benchmarks.