Lower-cost AI could lead to lower-cost products but more expensive luxury items, according to OpenAI CEO Sam Altman.
The cost of using any given level of artificial intelligence falls by approximately ten-fold every year and could lead to a dramatic decrease in the price of goods, according to OpenAI CEO Sam Altman.
“The cost to use a given level of AI falls about 10x every 12 months, and lower prices lead to much more use,” said OpenAI CEO Sam Altman in a blog post about AI economics on Feb. 9.
Altman referred to the cost falling by around 150 times from the firm’s GPT-4 model in early 2023 to GPT-4o in mid-2024.
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Summary of OpenAI CEO’s Insight on AI Cost Reduction and Its Impact
– **Rapid Decline in AI Costs:** The cost to use a given level of artificial intelligence is decreasing ten-fold each year, according to OpenAI CEO Sam Altman.
– **Effect on Product Pricing:** This significant reduction in AI costs could lead to cheaper products and services as companies can utilize advanced AI more affordably.
– **Luxury Products May Cost More:** Despite lower costs in general, luxury items might become pricier due to enhanced exclusivity and possibly higher-quality AI applications.
– **Historical Cost Reduction:** From early 2023 to mid-2024, the cost of using OpenAI’s technology dropped approximately 150 times, moving from GPT-4 to GPT-4o.
Hot Take
Alright, brace yourselves, shoppers and splurgers! As AI technology gets cheaper—like, dropping-a-zero-every-year cheaper, thanks to wizardry at OpenAI—we might soon be snagging everyday items at lower prices. Imagine AI doing everything from designing cheaper, cooler sneakers to brewing up cost-effective marketing strategies. But here’s the twist: while you’re saving pennies on essentials, you may need to break the bank for that fancy holographic handbag or AI-designed haute couture. The future sounds like a happy hour for bargain hunters but a VIP event for luxury lovers!
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