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Tom’s Hardware
Tom’s Hardware
Technology
Dallin Grimm

AI costs drop 280-fold, but harmful incidents rise 56% in last year — Stanford 2025 AI report highlights China-US competition

Temperamental AI.

The cost to prompt high-end AI LLMs has plummeted from $20 per million tokens to $0.07 per million in just 18 months, according to Stanford's 2025 AI Index Report. A panoramic view of the worldwide AI landscape, Stanford's annual report also reports a serious need for more responsible AI guardrails and a tightening race between the US and China's emerging AI tech.

Stanford University's Institute for Human-Centered AI (HAI) has published its annual AI Index Report since 2017, with its recent reports regularly cited by world governments. HAI has collected and collated data on AI's myriad facets, studying investments into the market, where and how the tech is most used, and where it is most lacking. This year's report offers serious insights on the growth of AI over 2024, and predicts where it will likely go next.

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