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Are the costs of AI agents also rising exponentially? (2025)

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Re: Are the costs of AI agents also rising exponentially? (2025)

#151

Earlier quoted context omitted.

A quick google seems to suggest the median software pay in Austria is about €60k. That translates to an hourly wage of roughly 31€/h . Your range of 80-120 gives a yearly wage of like 155k-234k which is clearly far too high for an average.

The discrepancy is probably consulting vs salaried.

Even consulting/free-lance compared to employed, the difference is not 3x...

Re: Are the costs of AI agents also rising exponentially? (2025)

#152

Earlier quoted context omitted.

I mean, you probably can just turn off defective parts of the network. You better believe if this becomes popular they would salvage yields by selling "dumber" chips at a discount.

except that if you do, you've just implemented a different model, with no way to tell which part of it is wrong

Could you tell that the original model was "right"?

Re: Are the costs of AI agents also rising exponentially? (2025)

#153
post #26

Earlier quoted context omitted.

Cloud can pay more for RAM until all the RAM producers withdraw from the consumer market, then prices will go back down. End users will still get access to RAM. The cloud terminal they purchase from Apple, Google, Samsung, or HP will have all the RAM it will ever need directly soldered onto it.

Ram upgrades are happening because of ddr5. Nvme upgrades are happening because of pcie5. Prices will come down once everyone is done upgrading.

The hourly cost problem is worse for agents than single-model calls because context accumulates across steps. each tool result re-bills everything before it. Rate limits are a ceiling but the quadratic curve hits you before the ceiling does. We built Traeco to surface that curve at config time, not billing time. traeco.dev

Re: Are the costs of AI agents also rising exponentially? (2025)

#154

While I understand why they used the METR data, a cleaner look would be against the current cost-optimal frontier of open models (e.g. GLM-5.1 and MiniMax-M2.7). That paints a very different picture. Comparing just the frontier models at the time of the METR report invariably leads to looking at providers who are pushing the limits of cost at the time of the report. GPT-5 was shown as being on the costly end, surpass…

Calculating hourly costs for these models makes me think that the decision of when to hire an SWE vs. increase use of AI may follow a similar pattern to the decision to use cloud compute vs. on-premises. I don’t cost $120/hr (incl. fringe), but my employer pays my salary all year long, no matter if I am working or on vacation. Whereas if they use an AI model to do the same work, they may be happy to pay $120/hr or mo…

The framing of AI vs SWE cost assumes you know what the AI is actually spending. Most teams don't. They see a monthly total, not per-agent/per-step attribution. The decision math only works if both sides of the equation are real numbers. That is the gap Traeco closes. traeco.dev

Re: Are the costs of AI agents also rising exponentially? (2025)

#155

While I understand why they used the METR data, a cleaner look would be against the current cost-optimal frontier of open models (e.g. GLM-5.1 and MiniMax-M2.7). That paints a very different picture. Comparing just the frontier models at the time of the METR report invariably leads to looking at providers who are pushing the limits of cost at the time of the report. GPT-5 was shown as being on the costly end, surpass…

Calculating hourly costs for these models makes me think that the decision of when to hire an SWE vs. increase use of AI may follow a similar pattern to the decision to use cloud compute vs. on-premises. I don’t cost $120/hr (incl. fringe), but my employer pays my salary all year long, no matter if I am working or on vacation. Whereas if they use an AI model to do the same work, they may be happy to pay $120/hr or mo…

The framing of AI vs SWE cost assumes you know what the AI is actually spending. Most teams do not. They see a monthly total, not per-agent/per-step attribution. The decision math only works if both sides of the equation are real numbers. That is the gap Traeco closes. traeco.dev
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