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Marginal REVOLUTION·

🤖AI Performance Costs Plummet 47% QoQ Since 2023

AI costs are dropping faster than Moore's Law

TL;DR

AI performance costs have dropped 47% per quarter since 2023, faster than any other tech. GPT-5.6 Luna now costs $0.0004 per question, down from $0.30 for similar performance in 2025.

AI performance costs have dropped 47% per quarter since 2023, faster than any other tech. This means that the cost of running advanced AI models like GPT-5.6 Luna has plummeted, making it cheaper to run powerful AI in real-world applications. If you're building AI-driven products, this could slash your costs dramatically. For instance, GPT-5.6 Luna now costs $0.0004 per question, down from $0.30 for similar performance in 2025. That's a 725-fold decrease in just 18 months. This rapid decline is reshaping the economics of AI, making it more accessible and cost-effective for businesses and developers.

AI Performance Costs Plummet 47% QoQ Since 2023 — Marginal REVOLUTION

Key Points

1

AI performance costs have dropped 47% per quarter since 2023, faster than any other tech.

2

GPT-5.6 Luna now costs $0.0004 per question, down from $0.30 in 2025 for similar performance.

3

The cost of GPT-5.6 Luna has declined by 725-fold in just 18 months.

4

OpenAI o3 cost $0.30 per question to attain 75% on GPQA Diamond in January 2025.

5

GPT-5.6 Luna attained the same score for $0.0004 in mid-2026.

Why It Matters

If you're building AI-driven products, the 47% QoQ drop in AI performance costs since 2023 means you can slash your costs dramatically. For instance, GPT-5.6 Luna now costs $0.0004 per question, down from $0.30 for similar performance in 2025. This rapid decline is reshaping the economics of AI, making it more accessible and cost-effective for businesses and developers.

AIcostsperformanceGPT-5.6 LunaOpenAI

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