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Sam Altman says AI cost will decrease 10 times per year

By admin On Feb 10, 2025

OpenAI CEO Sam Altman published a blog on Sunday explaining the rapid decline of AI costs. He mentioned that the price of using AI at a given level is decreasing ten times per year while the number of people utilizing it is increasing.

Sam Altman shared his three AI-related observations in a blog post. According to him, AI price is decreasing as the average token price decreased 150 times from the early 2023 GPT-4 to the mid-2024 GPT-4o release.

Altman compared this AI growth rate to Moore’s Law which “changed the world at 2x every 18 months”. He said AI growth is “unbelievably stronger”

The CEO of OpenAI also mentioned that the amount of resources used to create an AI model determines its resulting intelligence level. Altman also observed that investments in AI technology will maintain an uninterrupted growth path. Businesses continue investments in AI development because its speed of growth follows a “super-exponential” pace.

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