If you thought AI was expensive now, Sam Altman says just wait—because, according to him, the cost of using AI is about to drop by a factor of 10 every year.
Yep, the OpenAI CEO predicts that the price of running AI models will plummet annually, making powerful AI tools way more accessible across industries. And if he’s right, that could be a massive game-changer for businesses, developers, and anyone tired of watching their AI usage bill skyrocket.
Wait… AI Is Expensive?
Short answer: yes—especially at scale.
Behind every ChatGPT response, AI-generated image, or automated workflow, there’s a ton of computing power running on expensive GPUs. That’s why OpenAI, Google, and Microsoft are all racing to make AI faster, cheaper, and less power-hungry.
Right now, businesses using AI for complex tasks (like real-time customer support, predictive analytics, or AI-generated content) are racking up some serious cloud computing bills. But if Altman’s prediction holds up, we could be heading toward a world where AI isn’t just for big enterprises with deep pockets—it’s for everyone.
How Would AI Get Cheaper?
Altman points to a few key reasons why AI costs might free-fall:
- Better hardware – AI chips are evolving fast, and companies like Nvidia, AMD, and even OpenAI itself are building next-gen processors designed to run AI models more efficiently.
- Smarter algorithms – AI models are getting leaner, meaning they need less processing power to do the same (or better) work.
- More competition – As more AI companies enter the race, expect pricing wars that will force AI costs downward.
- AI distillation – This fancy term basically means training smaller, faster models that still perform well but don’t burn through GPU resources like their massive counterparts.
What This Means for Small Businesses
If AI tools become ten times cheaper every year, that’s a huge deal for small businesses. Right now, many AI-powered services come with high subscription fees or pay-as-you-go costs that add up fast. But in the near future, AI-driven automation, marketing, and data analysis could be as affordable as a basic SaaS subscription.
Imagine:
- AI-powered marketing that’s cheaper than hiring an agency.
- Customer support chatbots that don’t cost more than hiring a live rep.
- Real-time AI insights for business decisions—without enterprise-level pricing.
Basically, if Altman is right, AI won’t just be something that big companies can afford—it’ll be accessible for the everyday business owner.
But… Is He Right?
Big predictions like this sound great, but tech hype doesn’t always match reality. Sure, AI will likely get cheaper over time, but by tenfold every year? That’s ambitious.
Even if costs come down, AI companies still need to turn a profit, meaning subscription models, premium tiers, and API pricing will stick around. So while AI will get cheaper, don’t expect it to suddenly be free anytime soon.
That said, if Altman’s prediction even comes half true, the AI landscape is about to become a lot more accessible—which means now might be the perfect time to start integrating AI into your business before your competitors do.