One of the strangest things in the AI industry is 'tokenomics'. It's not very clear why using GPT-4 in early 2023 was so expensive and then six months later 20 bucks could get you a fair amount of GPT-4 inference. This pattern has continued across various labs/providers for years--there is a continuous see-saw of pricing that doesn't seem related to anything. So what open weight models do is at least provide a baseli…
What is strange about GPT-4 being expensive in 2023? Supply and demand. Which other model choices did we have? Prices are related to supply and demand. We see it play out with the introduction of capable open weight models or even other closed cloud models.
As of early June 2026, Opus 4.8 in fast mode cost $50/M output tokens and Opus 4.6 & 4.7 cost $150/M output tokens in fast mode
How can supply and demand explain the price drop? Was it cheaper to serve Opus 4.8? Is the demand for the newer Opus lower than for the older Opus? These are just fixed prices that seem picked out of thin air