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by rafaelmn 32 days ago
> AI revenue has been going up while the cost per token has been rapidly falling

Every model release now has been straight price increases since what GPT 4 ? When was the last time a new flagship model decreased prices compared to the previous one ?

3 comments

1. GPT 4 has gotten 6x cheaper over it's evolution (from initial release to Turbo to 4o). Maybe you meant "Only since 4o and only since its final release". Alas.

2. We are not interested in how different model naming schemes relate to prices, we are interested in the capabilities. So if you want to learn something about price development you need comparative levels of capabilities, and then look at the prices. 4o is not comparable to 5.5 in the first regard. It is (according to the benchmarks) maybe more comparable to current 5 nano - which is 98% cheaper.

Opus 4.5 became significantly cheaper directly per token
You are right I forgot about that ! I think my point still stands - price per token is not decreasing for frontier capabilities, in fact it's increasing.
This only means the frontier is growing faster than the price is decreasing. It's just the sum of two separate tendencies, and has little predictive value. TBH, I'm ok with this tradeoff - higher capability at slightly higher cost is perfectly fine.
token efficiency
Not seeing that either, tried really using Opus 4.7 today, and it ended up at $50 for the same kida thing that came out to $25 last week with Opus 4.6.
each model is different and nothing should be taken for granted, run your evals for your use cases. I'm not using Opus 4.7 for almost anything. I've seen very good improvements in GPTs since 5.2 and Opus 4.5 to 4.6 was quite an upgrade.
Models consume more tokens than ever for the same tasks.