CUTTING-EDGE AI WAS SUPPOSED TO GET CHEAPER. IT'S MORE EXPENSIVE THAN EVER

Summary from the TLDR newsletter

The latest AI models are doing more 'thinking', driving up the costs to complete tasks despite the cost of tokens dropping. This is the opposite of what many analysts and experts predicted even just a few months ago. Reasoning can deliver meaningfully better responses, but it spends significantly more tokens in the process. One way to lower costs is to use 'dumber' AIs - many use-cases don't require cutting-edge AI.