Epoch AI: AI costs are falling 13x per year, faster than Moore's Law

A report from Epoch AI says the cost of "artificial thought" is dropping nearly 50% per quarter and 13x per year — faster than lithium batteries, DNA sequencing and compute. OpenAI's GPT o3 cost $0.30 per GPQA Diamond question in January 2025, while GPT-5.6 Luna a year later cost just $0.0004 for the same score.

• AI costs fall 50% per quarter and 13x per year
• GPT o3: $0.30 per GPQA Diamond question, GPT-5.6 Luna: $0.0004
• Cost decline rate slowed from 66% to 32% per quarter in two years
• AI cost data only covers the period from 2023 onward