The AI Cost Paradox: 280x Cheaper, Bills Still Rising (opens in new tab)

The cost of running a capable AI model fell by roughly 280 times in two years. Over the same stretch, the average company's AI bill went up, not down. Both numbers are real, both come from credible research, and the space between them is the single most useful thing an operator can understand about AI economics in 2026. It explains why "the models keep getting cheaper" and "our AI spend is out of control" are being said in the same meeting, by the same people, about the same systems. I watch ...