No, the LLM costs are not going up!

I often hear flat out false statements about the state of LLM economics, one of them being that the costs are "unsustainable". This is blatantly false and easily falsifiable with just a few minutes of thinking. Of course I can never know what really goes on internally in companies like OpenAI and Anthropic but I feel I can make really good guesses. I'll lay out a few proxies that can help drive my point. Note that I'm not really talking about profitability of these companies. I'm only speaking about the consumer costs and the real costs to run these models and their trend. I also agree that the price to run the latest models always go up with time but this has a different meaning. I'm not focusing on this but rather I'm focusing on the price to achieve the same performance -- is it going up or down over time? Cost per capability has been decreasingEpochAi's analysis should drive the point very unambiguously that the price has gone down extensively. There ..., which could mean that…