THE END OF MOORE'S LAW FOR AI? GEMINI FLASH OFFERS A WARNING

Summary from the TLDR AI newsletter

The AI industry has operated under its own version of Moore's Law over the past few years with an unwavering belief that the cost of intelligence would perpetually decrease by orders of magnitude each year. Each new model generation was not only more capable, but also cheaper to run. Google broke that trend last week with the introduction of Gemini 2.5 Flash. The input token price for the model doubled while the output price more than quadrupled. This is the first time a major provider has backtracked on the price of an established model, and it may signal a turning point - the industry may no longer be on an endless downward slide of cost.