# the cost of intelligence
would you pay a hundred bucks to increase your IQ by ten points?
would you pay another hundred to clone yourself two times and have the three of you with a higher IQ do the work for you?
that would be great
by which year do you think that would be possible?
2030-2035-2050 maybe if you're pessimistic
well the fact of the matter is that it's available today
the pricing i described is a quite on point, just add up all your ai tools
for me, it's claude, chatgpt, perplexity, poe, obsidian, bolt.new, + API costs for openai, anthropic, together.ai
some 300$ per month
while that might be a lot of ai spend per person, it's really nothing if you consider the points above:
- IQ jump
- 3x cloning
- unreachable capabilities
and of course tons of things that I simply wouldn't do if I had to do them by hand
the cost of intelligence is falling drastically:
![[dane-vahey-of-openai-says-the-cost-per-million-tokens-has-v0-q_jUcKIIY2VaNBuDK5ppPcGQPUOrSE1zpXfG9QYjfsU.webp]]
> source: [reddit](https://www.reddit.com/r/singularity/comments/1fo2nj8/dane_vahey_of_openai_says_the_cost_per_million/)
this chart, albeit crude (gpt4o mini is nowhere near the original gpt4), still shows a clear trend
10x reduction in price per million tokens in 1.5 years
**
in august 2026, 1.5 from now, price per 1 mil tokens will floor at 40 cents for a model of gpt4o level
oh wait, deepseek v3 costs $1 per 1 mil and is approximately on par with gpt4o
mind my words, in aug 2026 it's gonna be 100x reduction
considering the improvements in hardware (eg, [cerebras](https://cerebras.ai/uncategorized/introducing-the-cerebras-cs-1-the-industrys-fastest-artificial-intelligence-computer/)) and algorithms (eg, diffusion language models by [inception labs](https://www.inceptionlabs.ai/)), we can look at another 100x improvement in speed over 18-24 months
again: cost of intelligence will drop 100.000 times within 2 years
and what happens with demand when price goes down?
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// 8 mar 2025
#economics_of_ai #predictions