Why AI Model Prices Keep Falling and What It Means for Startups
Frontier-model API prices have dropped year over year since 2023. Here's what's actually driving the decline and how startups should plan around it.
Emergent Wire
Author
AI Industry & Policy Analyst
12+ years experience
Tobias Reyes spent ten years as a technology strategy consultant, most of that time advising Fortune 500 clients on enterprise software adoption before AI became the whole conversation. He joined Emergent Wire to cover the industry from the incentive layer up: who actually pays for frontier model access, how compute costs shape product decisions, and where policy is likely to reshape the competitive landscape next. He is allergic to roadmap-slide analysis and prefers to start from unit economics and public filings whenever they exist.
Frontier-model API prices have dropped year over year since 2023. Here's what's actually driving the decline and how startups should plan around it.
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