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Fortune
Fortune
Thiyagarajan Maruthavanan

The AI cost collapse is changing what’s possible for startups

(Credit: Jason Henry/Bloomberg via Getty Images)

Recently I watched a startup demo where they were running 500 GPT-4 queries per user session. In 2023, that would have cost them $5 per user. Today it costs them less than 50 cents. And they’re still complaining about API costs being too high.

When costs collapse, new worlds appear. This isn’t just cost-cutting. It’s a phase change.

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