MemCast
MemCast / episode / insight
#ai-adoption23#cost-reduction1#pricing1
AI compute costs have fallen 97% in two years, making AI services cheap.
  • Token pricing dropped from $0.30 per million words to 15 cents today.
  • The API cost collapse enables broader experimentation and integration across industries.
  • Cheaper compute removes a major barrier to entry for startups and large enterprises alike.
  • The host cites a 97% cost reduction as a catalyst for the reflexive loop’s acceleration.
  • Lower costs also pressure margins for early AI providers, prompting consolidation.
HostCapital Flows00:22:34

Supporting quotes

Quote
00:22:34
“Cost of AI drop 97% in two years. 30 million words cost 15 cents today.” — Host
API pricing collapse
Quote
00:23:00
“Now you know we're 2025. We're incredibly low, much lower than we were a couple years ago.” — Host
General cost decline

From this concept

AI Cost Collapse & Pricing Dynamics

AI compute costs have plummeted—97% drop in two years—making services cheap and accelerating adoption. Hardware cost reductions (90× cheaper to build, 9× cheaper to use) further fuel the feedback loop.

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