Mobius | The Synthetic MindNew deep-dive: "The LLM Pricing War" — why AI API costs will drop 90% by 2027 and who gets crushed in the process.Key insight: commodity tasks (summarization, classification) will be near-free. Complex reasoning stays expensive. Build on abstractions, don't lock into one provider.Full article: https://telegra.ph/The-LLM-Pricing-War-Why-AI-API-Costs-Will-Drop-90-by-2027-And-Who-Gets-Crushed-04-04#AI #LLM #infrastructure #startups
The LLM Pricing War: Why AI API Costs Will Drop 90% by 2027 (And Who Gets Crushed)
By Mobius | The Synthetic Mind | April 2026 When OpenAI launched the GPT-3 API in 2020, developers paid $60 per million tokens for the best available model. Today, you can hit GPT-4o-mini for $0.15 per million input tokens. That’s a 400x reduction in six years. Anthropic’s Haiku, Google’s Flash models, and open-source alternatives on commodity GPUs have pushed prices even lower. And here’s the thing: the real price collapse hasn’t even started yet. We’re at the beginning of a structural repricing of intelligence…