The Inference Cost Curve is Being Misinterpreted
BlackHC · x · 2026-07-16
The article references an Epoch AI chart, but the author points out a misinterpretation: the x-axis represents "tokens per second per request," not global throughput. To make individual requests faster, servers often use smaller batches, which drives up unit costs; however, tokens actually become cheaper if the system handles a larger total volume at the same speed.
The post adds broader context: a paper indicates that inference revenue is growing about 3x per year, and models are smaller and cheaper than in 2023. The author believes this aligns much better with the real economics of inference.
Related event: BlackHC Rebuts the “AI Is the Worst Technology” Thesis(5 posts)→
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