Frontier AI faces pricing reckoning as token volume explodes 25-fold — mid-tier models deliver 90% of flagship capability at one-sixth the cost
This article examines the current state of AI model pricing and intelligence, highlighting that while frontier models like Anthropic's Claude Fable 5.1 remain top performers, their cost is significantly higher than mid-tier models on the Pareto frontier. Data from Artificial Analysis and OpenRouter shows that models like Gemini 3.8 Flash and GPT 5.6 Sol achieve nearly the same intelligence scores at a fraction of the cost. Token usage has exploded 25x year-over-year, driven by affordable models, while expensive frontier models see minimal usage. The piece discusses the economic implications and Jevons paradox in AI.
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