Costs are decreasing due to technological advancements, increased model efficiency, and the availability of smaller, more specialized models.

Large frontier models remain expensive, but costs for powerful yet cost-effective models have dropped significantly, and there’s no reason to believe this trend won’t continue.

Specific reasons for cost reduction:

- Smaller, More Efficient Models

- Improved Training and Hardware

- Mixture of Experts (MoE) Architecture

- Specialization

Evidence of cost declines include: price drops, cost-effective edge deployments, commoditization of core capabilities.