Artificial Intelligence Costs Plunge 10x Annually – Sam Altman’s Prediction
Artificial intelligence is the next big thing that has the potential to revamp industries and economies across the world. It is becoming more affordable with new advancements and innovation. According to OpenAI CEO Sam Altman, the cost of implementing a certain level of AI is decreasing roughly by 10 times every year. Artificial Intelligence Cost Reduction Negates Moore’s Law In a blog post on Feb. 9, Altman compared AI’s cost trend to that of transistors under Moore’s Law. This law states that the number of transistors on a chip doubles every two years, lowering prices while increasing processing capability. However, this time AI is evolving at a quicker rate. Also read: Alaya AI: Revolutionizing Technology with Advanced Machine Learning He used OpenAI’s models as evidence, pointing out that the cost of its GPT-4 model in early 2023 had dropped by around 150 times by the release of GPT-4o in mid-2024. He predicted that this quick cost reduction would lead to an increase in AI adoption across many industries, making AI-powered technologies affordable to businesses and consumers alike. How AI Will Reshape the Economy As artificial intelligence becomes more affordable, Altman thinks that the cost of many goods and services will fall. He stressed that today’s two major limits on economic advancement are the cost of intellect and the cost of energy. If AI costs continue to plummet at their current rate, businesses depending on AI-driven solutions, such as healthcare, automation, software development, and customer service, could experience significant cost savings. Also read: How To Create an AI Agent However, not everything will become cheaper. Altman stated that while AI-powered goods and services would become more accessible, luxury items and naturally scarce resources such as land may see their costs rise even further. This could widen the gap between mass-market affordability and high-end exclusivity. By 2035, Altman expects a society in which every individual has access to intellectual potential equivalent to that of the entire population. “Everyone should have access to unlimited genius to direct however they can imagine,” he stated, emphasizing OpenAI’s dedication to broad artificial intelligence accessibility. Global AI Competition Heats Up The decreasing cost of artificial intelligence has already started to shake up global economies. The release of a low-cost AI model by Chinese developer DeepSeek in January shook the stock market, causing a drop in US semiconductor equities. Nvidia, one of the leading producers of high-performance AI technology, also experienced a significant down trend. Also read: DeepSeek AI: Exploring the Capabilities Meanwhile, Chinese IT titans, automakers, and telecom companies are incorporating DeepSeek’s AI into their operations, raising concerns that the global AI race is heating up. As AI models grow more economical and widely available, businesses and industries will face increased rivalry for AI domination. The AI Revolution Has Just Started With artificial intelligence costs falling dramatically, the world is on the verge of an era in which intelligence is no longer a privilege reserved for corporations and governments, but a universally accessible resource. The current trend is expected to continue and AI will change businesses, and economies with its mass adoption and potential. AI’s rapid growth is transforming the world quicker than anyone could have predicted, and those who embrace it early will most certainly enjoy the rewards.