[sethkim]

Both great points, but more or less speak to the same root cause - customer usage patterns are becoming more of a driver for pricing than underlying technology improvements. If so, we likely have hit a "soft" floor for now on pricing. Do you not see it this way?

[simonw]

Even given how much prices have decreased over the past 3 years I think there's still room for them to keep going down. I expect there remain a whole lot of optimizations that have not yet been discovered, in both software and hardware.

That 80% drop in o3 was only a few weeks ago!

[sethkim]

No doubt prices will continue to drop! We just don't think it will be anything like the orders-of-magnitude YoY improvements we're used to seeing. Consequently, developers shouldn't expect the cost of building and scaling AI applications to be anything close to "free" in the near future as many suspect.

[vfvthunter]

I do not see it this way. Google is a publicly traded company responsible for creating value for their shareholders. When they became dicks about ad blockers on youtube last year or so, was it because they hit a bandwidth Moore's law? No. It was a money grab.

ChatGPT is simply what Google should've been 5-7 years ago, but Google was more interested in presenting me with ads to click on instead of helping me find what I was looking for. ChatGPT is at least 50% of my searches now. And they're losing revenue because of that.