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Inference Costs

2 GoKawiil briefs on this topic

Analysis urges IT leaders to design AI serving infrastructure around workload needs

A technology commentary argues that production AI performance depends less on which foundation model is chosen and more on the serving harness around it—the architecture, memory management, scheduling and optimization that turn model intelligence into a working service. It recommends that organizations define latency, concurrency, cost and traffic requirements first, then select models and infrastructure to match, rather than defaulting to the highest-accuracy model.

Epoch AI: Cost of matching AI performance fell 47% per quarter since 2023

A new Epoch AI report by Emberson and Roodman finds that the price of achieving a given level of AI performance has dropped roughly 47% per quarter over the past three years, a 13-fold annual decline. The report cites OpenAI's o3, which cost about $0.30 per question to score 75% on GPQA Diamond in January 2025, compared with a much newer model reaching similar scores for a fraction of a cent by mid-2026.