LLMs are expensive and are only going to become more expensive
Prices per token are dropping roughly 10x per year for the same quality of model. Bills are going up because AI agents use way more tokens per task, not because the models cost more. The losses come from training new models and buying hardware, not from selling tokens too cheap (Anthropic's inference margins are estimated somewhere in the 60–80% range).
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Prices per token are dropping roughly 10x per year for the same quality of model. Bills are going up because AI agents use way more tokens per task, not because the models cost more. The losses come from training new models and buying hardware, not from selling tokens too cheap (Anthropic's inference margins are estimated somewhere in the 60–80% range).