Why AI costs are rising despite cheaper model prices
Rebekator · reddit · 2026-08-26
The author observes that despite falling model prices, their AI spending is increasing. Lower barriers lead users to offload trivial tasks they wouldn't have used AI for a year ago (e.g., using Claude Code for 10-minute manual jobs). Additionally, agent-based apps like Claude Code consume far more compute than chat. This creates a Jevons paradox where increased efficiency leads to higher total demand and rising actual compute costs.
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