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The Emerging Market for Intelligence: Pricing, Supply, and Demand for LLMs

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Re: The Emerging Market for Intelligence: Pricing, Supply, and Demand for LLMs

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How much does intelligence cost? How concentrated is the AI market and is it winner take all? When prices fall, how does demand change and is there a Jevons effect? These questions matter, but actual market data has been hard to come by. We use data from Microsoft Azure and OpenRouter to find out.

Re: The Emerging Market for Intelligence: Pricing, Supply, and Demand for LLMs

#3
post #2

How much does intelligence cost? How concentrated is the AI market and is it winner take all? When prices fall, how does demand change and is there a Jevons effect? These questions matter, but actual market data has been hard to come by. We use data from Microsoft Azure and OpenRouter to find out.

Also:

The paper: https://andreyfradkin.com/assets/LLM_Demand_12_12_2025.pdf

The slides: https://docs.google.com/presentation/d/1xfpubvdduUYznqPe5rZY...