The End of Moore's Law for AI? Gemini Flash Offers a Warning
SMRTR summary
Google has raised the price of its Gemini 2.5 Flash model, the first major AI provider to do so for an established model. This move may signal the end of decreasing AI costs, likely due to unexpected usage patterns and demand. It reveals the complex cost structure of LLM operations and suggests a soft floor on intelligence costs due to hardware, performance, and energy constraints. Developers may need to consider alternatives like batch processing and open-source models to manage costs.
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