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231_005predictionAIAI-timing

Next year frontier reasoning costs will be pennies (down from ~$7 now).

Predictor: Peter Diamandis · ep#231 "Top AI News: Sonnet 4.6, Grok 4.2, Gemini 3 Deep Think, and OpenClaw | EP #231" · source

Prior probability
65.0%
Current probability
54.6%
evolves via intake + LBP
Conviction
4/5
Signal quality
B
Resolution
pending
Window
2027-01-01 – 2027-08-31
Edges in / out
8 / 5
Tickers exposed
33

Prediction text

Next year frontier reasoning costs will be pennies (down from ~$7 now). | Yeah, but guess what? When it's pennies next year

Verbatim quote

From episode "Top AI News: Sonnet 4.6, Grok 4.2, Gemini 3 Deep Think, and OpenClaw | EP #231"
Yeah, but guess what? When it's pennies next year

Predictor: Peter Diamandis

κ + Brier as of 2026-05-22
κ (discount)
0.875
Brier
0.0367
excellent
Hits / Misses
10 / 0
of 15 resolved
Hit rate
66.7%
Calibration plot (stated vs observed)

Evidence about this node from Peter Diamandis is multiplied by κ in /api/intake. Lower κ = less weight; floors at 0.10 (effectively silenced) and caps at 1.00 (full weight).

Reference class

Not linked

This node isn't linked to a reference class. The Bayesian update applies without outside-view blending.

Probability over time

4 prob_history rows
0%25%50%75%100%prior 65%2026-04-302026-05-032026-05-10
intake v2milestone miss sweeplbp propagationreference class assignedlegacy v1prior_prob (analyst seed)current = 54.6%

Milestone chain

Pre-event signals (upstream prereqs + window checkpoints) → resolution event → downstream cascades. Status/dates update from linked nodes; re-derive nightly via scripts/ops/derive_milestones.py.
Leading chain: 5 fired ✓ · 4 pending
  1. 2026-04-01 → 2027-06-30pendingDeepSeek-class open or low-cost frontier reasoning at sub-$2 per million tokens
    How: Open-weights or low-cost frontier reasoning model (DeepSeek V4, Qwen, Llama-class) achieves frontier-tier benchmark scores at <=$2 per 1M output tokens
    Source: https://aithority.com/machine-learning/from-gpt-5-5-to-deepseek-v4-how-developers-are-building-smarter-ai-agents-with-multi-model-routing-in-2026/conf 85%
    Notes: DeepSeek V4 already at $0.14/$1.74 per 1M tokens. Frontier-grade reasoning is cheap — Diamandis 'pennies' claim partially HIT for non-flagship tier.
  2. 2026-06-01 → 2027-06-30pendingFrontier reasoning model API price drops below $5 per million output tokens
    How: At least one frontier-class reasoning model (GPT-5-class, Claude Opus-class, Gemini Ultra-class) priced at <=$5 per 1M output tokens on official API pricing page
    Source: https://benchlm.ai/llm-pricingconf 70%
    Notes: Claude Haiku 4.5 already at $5/M output (April 2026). Frontier reasoning at this price still pending.
  3. 2026-04-01 → 2027-08-31pendingFlagship frontier model (Opus / GPT-5.5 Pro / Ultra-class) holds price floor near $30+ per 1M output
    How: Flagship reasoning tier (GPT-5.5 Pro at $180/M out, Opus class) remains at >=$30 per 1M output tokens through 2027
    Source: https://aicostcheck.com/blog/gpt-5-pricing-breakdownconf 80%
    Notes: Counterevidence — flagship tier stays expensive even as commodity tier collapses to pennies. 'Pennies' claim true for commodity, false for frontier ceiling.
  4. 2027-01-01 → 2027-08-31pendingAverage industry cost-per-reasoning-task falls >=80% from 2025 baseline
    How: Industry analyst report (Artificial Analysis, a16z, Andreessen) shows weighted-average inference cost per million tokens declining >=80% from January 2025 baseline
    Source: https://www.morphllm.com/claude-vs-chatgptconf 65%

What if this resolves?

Clamp this prediction TRUE or FALSE and run a counterfactual Gibbs sample. Surfaces the predictions whose marginals shift most under that assumption.
(live posterior: 55%)

Click a button to clamp this prediction and run a Gibbs sample. Returns the predictions whose marginals shift most. ~30s per run; ideal for stress-testing "if X resolves, what else moves?"

Evidence chain

Every probability update with full Bayesian provenance — chronological, latest first
LBP2026-05-10T02:00:02Z54.6%-1.4pp
Network propagation: 56.0% → 54.6%
6-iter LBP, residual 0.00584 · damping 0.5, w_intrinsic 0.5 · method lbp_v3 · run e5c18d29
LBP2026-05-03T02:00:01Z56.0%-2.1pp
Network propagation: 58.1% → 56.0%
6-iter LBP, residual 0.00677 · damping 0.5, w_intrinsic 0.5 · method lbp_v3 · run 1a683ac9
LBP2026-04-30T16:39:51Z58.1%-2.9pp
Network propagation: 60.9% → 58.1%
5-iter LBP, residual 0.00825 · damping 0.5, w_intrinsic 0.5 · method lbp_v2 · run 0c8a4ea3
LBP2026-04-30T02:18:57Z60.9%-4.1pp
Network propagation: 65.0% → 60.9%
5-iter LBP, residual 0.00825 · damping 0.5, w_intrinsic 0.5 · method lbp_v1 · run 592311ef

Network propagation neighbors

Top edges sorted by latest LBP cross-impact
All propagation →

Top incoming (parents)

Edges that influence THIS node's belief

KindNodeTheir probP(c|s=T)P(c|s=F)Δ implied
prereq234_012
Anthropic revenue will cross OpenAI revenue in middle of 202Peter Diamandis
67.1%0.6500.050-0.097
prereqSEM_042
2025 will be the definitive year that agentic systems finallKevin Weil
73.8%0.6500.050-0.059
prereq235_002
Anthropic will exceed OpenAI in revenue this year (2026).Dave Blundin
74.6%0.6500.050-0.054
prereqSEM_012
Nvidia quadrupled chip production output while only doublingJensen Huang
75.0%0.6500.050-0.050
killerTK03
AI Regulatory Moratorium (EU/US Capability Freeze)
10.0%0.0500.650+0.044

Top outgoing (children)

Predictions THIS node influences

KindNodeTheir probP(c|s=T)P(c|s=F)Δ implied
prereq232_055
We're exiting the industrial age permanently as recursive sePeter Diamandis
35.5%0.7000.050+0.044
prereq235_030
Ray Kurzweil predicts Longevity Escape Velocity (LEV) by 203Ray Kurzweil
39.2%0.7500.050+0.033
prereqSEM_034
True artificial general intelligence will be achieved betweeDemis Hassabis
28.7%0.5500.050+0.031
prereq241_043
ASI will arrive within 2 years to 5 years to this next decadPeter Diamandis
35.9%0.6500.050+0.014
prereqCMQ_002
By 2028, AI systems will reach 'independent researcher' leveSam Altman
31.4%0.5500.050+0.005

Ticker exposure

33 ticker(s) linked

Beneficiaries (23)

SOUNCRWVSITMNVDAARMGTLBBBAITSMAPLDCEVAAIMSFTMRVLSFTBYORCLQCOMAVGOBABAAMDGOOGLIBMAMZNMETA

Adverse (6)

WNSCHGGCTSHIBMINFYACN

Prerequisites (8)

Predictions that must hit first
TypePredTitleDomainLag
prereq235_002Anthropic will exceed OpenAI in revenue this year (2026).AI
prereqSEM_008Training runs costing $10 billion for a single model will commence sometime in 2025.AI
prereq234_012Anthropic revenue will cross OpenAI revenue in middle of 2026Markets/Stocks
prereqSEM_012Nvidia quadrupled chip production output while only doubling human headcount — achieved by deploying AI coding tools (Cursor, Claude Code) across engineering.AI/Manufacturing
prereqSEM_0422025 will be the definitive year that agentic systems finally hit the mainstream.AI/Agents
killerTK14Superbubble Pop (S&P 500 -40%, Moonshot Capital Evaporates)
killerTK01AGI Capability Plateau (2026-27 Training Stall)
killerTK03AI Regulatory Moratorium (EU/US Capability Freeze)

Dependents (5)

Predictions enabled by this
TypePredTitleDomainLag
prereq235_030Ray Kurzweil predicts Longevity Escape Velocity (LEV) by 2033.Biotech/Longevity
prereq232_055We're exiting the industrial age permanently as recursive self-improvement unfolds.AI
prereq241_043ASI will arrive within 2 years to 5 years to this next decadeAI
prereqCMQ_002By 2028, AI systems will reach 'independent researcher' level — driving autonomous scientific discoveries without human intervention.AI
prereqSEM_034True artificial general intelligence will be achieved between 2032 and 2042 — 'first we solve AI, then use AI to solve everything else'.AI/AGI

Linked documents (4)

Auto-generated by cosine similarity from Polymarket / Manifold / EDGAR / GDELT
SimSourceTitleMarket probPolarityReviewedPublished
0.579manifoldWill I buy gasoline for more than $5/gallon this year (USA)37%mentionspending2026-05-16
0.574manifoldWill "Dairy cows make their misery expensive (but t..." make the top fifty posts in LessWrong's 2026 Annual Review?11%mentionspending2026-05-04
0.566manifoldWill Dan complain about the cost of NYC unprompted?69%mentionspending2026-05-16
0.551manifoldWhat grade will I get from my Enlightenment philosophy exam?mentionspending2026-05-28

Raw metadata

From Thesis_Timeline_v1.0_FINAL workbook
{
  "nia": false,
  "qty": "pennies",
  "url": "https://www.youtube.com/watch?v=HklyjXKYFng",
  "mode": "PREDICTION",
  "role": "Host",
  "context": "When a frontier reasoning costs seven bucks instead of 3,000, think of the implication for startups that gain institutional powers. Yeah, but guess what? When it's pennies next year, well, it will be, but cost curves are now going to start collapsing industries before the technology does",
  "to_year": 2027,
  "verbatim": "Yeah, but guess what? When it's pennies next year",
  "conv_cues": "guess what; it will be",
  "direction": "DOWN",
  "from_year": 2027,
  "timeframe": "next year (2027)",
  "conv_level": "HIGH",
  "milestones": [
    {
      "kind": "prereq",
      "label": "Nvidia quadrupled chip production output while only doubling human headcount — achieved by deploying AI coding tools (Cursor, Claude Code) a",
      "status": "hit",
      "weight": 0.5,
      "ordinal": -9,
      "source_id": "SEM_012",
      "expected_date": "2026-04-29",
      "observed_date": "2026-04-29"
    },
    {
      "kind": "prereq",
      "label": "Training runs costing $10 billion for a single model will commence sometime in 2025.",
      "status": "hit",
      "weight": 0.5,
      "ordinal": -8,
      "source_id": "SEM_008",
      "expected_date": "2026-04-29",
      "observed_date": "2026-04-29"
    },
    {
      "kind": "prereq",
      "label": "Anthropic revenue will cross OpenAI revenue in middle of 2026",
      "status": "hit",
      "weight": 0.5,
      "ordinal": -7,
      "source_id": "234_012",
      "expected_date": "2026-04-29",
      "observed_date": "2026-04-29"
    },
    {
      "kind": "prereq",
      "label": "Anthropic will exceed OpenAI in revenue this year (2026).",
      "status": "hit",
      "weight": 0.5,
      "ordinal": -6,
      "source_id": "235_002",
      "expected_date": "2026-04-29",
      "observed_date": "2026-04-29"
    },
    {
      "kind": "prereq",
      "label": "2025 will be the definitive year that agentic systems finally hit the mainstream.",
      "status": "hit",
      "weight": 0.5,
      "ordinal": -5,
      "source_id": "SEM_042",
      "expected_date": "2026-04-29",
      "observed_date": "2026-04-29"
    },
    {
      "kind": "llm_pre_event",
      "label": "DeepSeek-class open or low-cost frontier reasoning at sub-$2 per million tokens",
      "notes": "DeepSeek V4 already at $0.14/$1.74 per 1M tokens. Frontier-grade reasoning is cheap — Diamandis 'pennies' claim partially HIT for non-flagship tier.",
      "source": "https://aithority.com/machine-learning/from-gpt-5-5-to-deepseek-v4-how-developers-are-building-smarter-ai-agents-with-multi-model-routing-in-2026/",
      "status": "pending",
      "weight": 0.4,
      "ordinal": -4,
      "source_id": null,
      "confidence": 0.85,
      "source_url": "https://aithority.com/machine-learning/from-gpt-5-5-to-deepseek-v4-how-developers-are-building-smarter-ai-agents-with-multi-model-routing-in-2026/",
      "expected_date": "2026-11-14",
      "research_origin": "deep_research",
      "expected_date_range": {
        "to": "2027-06-30",
        "from": "2026-04-01"
      },
      "measurement_criterion": "Open-weights or low-cost frontier reasoning model (DeepSeek V4, Qwen, Llama-class) achieves frontier-tier benchmark scores at <=$2 per 1M output tokens"
    },
    {
      "kind": "llm_pre_event",
      "label": "Frontier reasoning model API price drops below $5 per million output tokens",
      "notes": "Claude Haiku 4.5 already at $5/M output (April 2026). Frontier reasoning at this price still pending.",
      "source": "https://benchlm.ai/llm-pricing",
      "status": "pending",
      "weight": 0.4,
      "ordinal": -3,
      "source_id": null,
      "confidence": 0.7,
      "source_url": "https://benchlm.ai/llm-pricing",
      "expected_date": "2026-12-15",
      "research_origin": "deep_research",
      "expected_date_range": {
        "to": "2027-06-30",
        "from": "2026-06-01"
 
... (truncated)