AI costs fall ~47% per quarter — 54x faster than electricity, but R&D elasticity is average
RishiBommasani · x · 2026-09-24
Epoch AI finds AI costs at a given performance level have fallen 47%/quarter since 2023 — 4x faster than DNA sequencing, 6x faster than compute, 18x faster than lithium batteries, and 54x faster than electricity (pre-1973). But plotted against cumulative R&D rather than time, AI's price elasticity to R&D investment is merely average: the unprecedented price fall reflects unprecedented R&D spending, not unusual returns.
Related event: Epoch AI: Cost of Equivalent AI Performance Falls 47% Per Quarter(13 posts)→
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