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AI’s Cost Crisis Is Here
Published: 10 June 2026 at 01:28 Europe/London
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Episode notes
The AI game is flipping upside down — cheaper models are stealing the spotlight as users ditch pricey giants for cost-effective power. Coinbase’s Brian Armstrong predicts 80% of AI workloads will shift to ultra-affordable models within 12-18 months, leaving only the toughest tasks for top-tier AI. This could crush big labs’ wallets ahead of their IPOs, but early wins like Harvey’s 3x cost cut prove smaller models can match quality. The new battle isn’t open-source vs. closed — it’s large vs. lean. With subsidies fading and budgets tightening, efficiency is winning over brute force.
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