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Cheap, powerful AI models are increasing usage, a bullish sign for the AI boom

TL;DR

AI companies have competed on having the best and often most dangerous models for years. Now, they're pivoting to a new focus: cost. Why it matters: The biggest risk to the AI boom is demand, and recent innovations to make models cheaper while maintaining powerful levels of intelligence have offered a bullish signal.

Nauti's Take

Small teams should first measure the cost curve in their own workflows, tracking token spend, output quality, and error rates on real tasks. The report relies on a single source and provides no hard usage figures, so investment decisions should wait for independent benchmarks and actual API bills.

Sources