Cutting-Edge AI Was Supposed to Get Cheaper. It's More Expensive

3 Brajeshwar 2 8/31/2025, 3:32:14 AM wsj.com ↗

Comments (2)

helpfulfrond · 1d ago
NitpickLawyer · 1d ago
> It’s More Expensive Than Ever.

No, it's not. GPT5 is 4-6-12x cheaper than their previous strongest "reasoning" or "SotA" (GPT4) models on launch. While maintaining the same capabilities, or improving drastically (agentic coding). And this will "drag prices down" as the competition will feel forced to match this pricing or people will move to alternatives. This is good for us, the consumers of their APIs.

Plus, open models are "close" behind (6-9 months behind on capabilities, depending on who you ask) while again keeping the floor pricing down. And open models have the advantage that they can be served internally (check lmsys latest dsv3 deployment blog) and they can be fine-tuned for specific internal usecases.

Honestly, reading mainstream media on specialised topics has always been rough, but with AI it's at a new level. All they do is spread FUD and miss the point on every single technical aspect.