28 August 2026

AI model prices fall while building costs rise

• Companies offering AI models are cutting prices significantly, making access cheaper for customers.
• The computational infrastructure required to build those models costs more than ever, creating a cost squeeze.
• This gap means companies must find new ways to make money from AI beyond just selling access to models.

How it was covered

The NeuronPete Huang & Grant Harvey

Bloomberg reports that AI model prices are declining sharply even as the computational infrastructure required to build these models becomes increasingly expensive.