AI Shrinkflation: Your AI Model Was Quietly Dialed Back (opens in new tab)

AI Shrinkflation: Your AI Model Was Quietly Dialed Back The age of token subsidization is over. AI providers are adjusting pricing, throttling capacity, and dialing back model quality — and most users haven't noticed yet. You open your AI coding assistant on a Tuesday morning. Something feels off. The reasoning feels shallower. The context-building you relied on is gone. It's not stopping to read the file before editing it. You aren't imagining it. A senior director at AMD's AI group ran the ...