Topic
ai-economics
4 articles
The Deflation Engine: AI Inference Costs Are Falling Faster Than Anyone Modeled
Quantization, speculative decoding, hardware competition, and model distillation are compounding into an inference cost decline that will reshape which AI applications are economically viable — and when.
The Economics of Foundation Model Companies: Revenue, Burn Rates, and the Path to Profitability
The foundation model business is structurally brutal — massive capital requirements, declining unit economics, and intense competition mean most of today's AI labs will not survive as independent companies.
The Long View: When Models Become Commodities
GPT-4-level intelligence is rapidly approaching commodity pricing — and the consequences for where value accrues in the AI industry will reshape the entire technology landscape.
The New Economics of AI Training Runs
As frontier AI training runs cross the $100 million threshold and climb toward $1 billion, the economics of who can afford to build foundation models are reshaping industry structure, competitive dynamics, and the geography of AI power.