The 2023-2026 model price war — and why your cost model is already obsolete — step 5 of 8
Four features. Two of them were too expensive to run on GPT-4 in 2023 (would have eaten 100%+ of revenue per user — hundreds of dollars/user/month) but become viable on Haiku 4.5 in 2026 (now in the $10-25/user/month range, fine for a $30 subscription).
The other two were ALREADY cheap enough in 2023 that the price collapse didn't change anything — they were viable on either model.
Which TWO features were unlocked by the price collapse?
The 2023-2026 model price war — and why your cost model is already obsolete — step 5 of 8
Four features. Two of them were too expensive to run on GPT-4 in 2023 (would have eaten 100%+ of revenue per user — hundreds of dollars/user/month) but become viable on Haiku 4.5 in 2026 (now in the $10-25/user/month range, fine for a $30 subscription).
The other two were ALREADY cheap enough in 2023 that the price collapse didn't change anything — they were viable on either model.
Which TWO features were unlocked by the price collapse?