AI is getting way too expensive and its the reason markets might blow up BUT not for lack of demand - its the exact opposite:

> demand for ai is skyrocketing. the models actually work but the tokens are too expensive.
i switched to claude fable 5 this week and hit usage limits almost immediately
who wins? chinese open models. fraction of the size, 80-90% of frontier capability, costs 1/200th of claude fable, gpt 5.5 high.
ignore the benchmarks btw, no one in the real world actually cares, its the bill they have to pay:
> the number of US startups shifting their claude subscriptions to cheaper models has 3X'd recently.
companies like uber are starting to substitute models for the same tasks, allocating cheaper budgets
the bottlenecks are (yeah you guessed it!) compute, power, memory, cooling etc
my guess is the push to cheaper models will force new model architectures and chip design
apple's memory chip design for their new 20B on-device model is a clear example of this.
chart below from latest citadel report: