AI'S CAPABILITY IMPROVEMENTS HAVEN'T COME FROM IT GETTING LESS AFFORDABLE

Summary from the TLDR AI newsletter

AI's capability improvements at the frontier have not led to increased inference costs relative to human labor. Despite rising per-task inference costs, current models achieve tasks at roughly 3% of human costs without any upward trend in median cost ratios. Models can continue advancing even under strict cost constraints, enabling profitable automation with AI cost ratios remaining well below human levels.