Daniel Miessler • 3/28/2026

What Happens When AI Stops Being Artificially Cheap

This article explores the impending end of subsidized AI inference costs, arguing that most tasks (95%) don't need expensive frontier models and will shift to affordable open-source or lower-tier cloud models. It predicts a market split: costly frontier AI for complex research and cheap, efficient models for everyday use. The author cites leaked documents and industry reports to support claims about cost declines and revenue losses, concluding that most users won't notice the transition.

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#Frontier Models #Model Efficiency #Open Source Models