I Pay $200. I Use $12,500 in Tokens. AI Costs Crashed 850x and Subscriptions are Dead. | GMP EP03

I Pay $200. I Use $12,500 in Tokens. AI Costs Crashed 850x … · Mar 9, 2026 Technology

AI token costs have fallen 850 times since 2020. What cost $60 per million tokens with GPT-3 now costs 6 cents with open-source Llama 4. It's not just cheaper — the models are dramatically smarter. Every industry bottleneck unlocked by intelligence is now also being unlocked by near-zero cost.

I Pay $200. I Use $12,500 in Tokens. AI Costs Crashed 850x … · Mar 9, 2026 Technology

Open-source models are mostly distilled from the latest closed-source frontier models. So every improvement OpenAI or Anthropic makes also improves the open-source alternatives that compete with them. The companies funding frontier research are inadvertently subsidising their own open-source rivals.