AI will be cheaper, says Sam Altman. Openai’s CEO said the cost of using AI drops 10 times a year. .
Openai CEO Sam Altman says AI will be used more frequently as costs continue to plummet.
“The cost of using a certain level of AI drops by about 10 times every 12 months, and lower prices leads to much more use,” Altman wrote in a blog post on Sunday.
“You can see this at the token cost from GPT-4 in early 2023 to GPT-4o in mid-2024. The price per token fell about 150 times over that period,” he added. . “Moore’s laws changed the world twice every 18 months. This is incredibly strong.”
This was one of three observations Altman made in his post, focusing on AI development.
In addition to the cost, Altman said the intelligence of the AI model is equal to the amount of resources used to develop it.
“It seems that you can spend arbitrary amounts and get a continuous, predictable profit. The scaling method that predicts this is to be accurate in many digits,” Altman writes Masu.
Altman also said that because the intelligence of the AI model is growing at a “ultra-clear” rate, “there is no reason to increase investment in the near future.”
“If these three observations apply, their impact on society is important,” writes Altman.
“The prices of many items ultimately drop dramatically (now the cost of intelligence and energy constrains a lot of things). “He added.
An Altman representative from Openai did not respond to a request for comment from Business Insider.
The Altman post comes weeks after a massive sale of AI-related stocks in January.
The sale was caused by the successful runaway success of Chinese AI startup DeepSeek. Deepseek’s high-performance, inexpensive models raised concerns that demand for AI hardware like Nvidia’s chips could drop.
Meanwhile, tech giants such as Amazon, Microsoft, Google and Meta have doubled in AI races. Executives from these companies said in recent revenue reports that they are increasing their investment in AI.
The four companies’ total capital expenditures are expected to exceed $320 million this year.
Last month, when Altman was in the White House, President Donald Trump announced Stargate, a $500 billion AI infrastructure investment project. Stargate is a joint venture between Openai, Softbank, Oracle and Emirati Investor MGX.
“This means we can create AI and AGIs in the United States,” Altman said of Stargate in an interview with Fox News’ “Special Report with Bret Baier” on January 21.
