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
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
Yeah, but guess what? When it's pennies next year
Predictor: Peter Diamandis
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
This node isn't linked to a reference class. The Bayesian update applies without outside-view blending.
Probability over time
Milestone chain
- 2026-04-01 → 2027-06-30pendingDeepSeek-class open or low-cost frontier reasoning at sub-$2 per million tokensHow: Open-weights or low-cost frontier reasoning model (DeepSeek V4, Qwen, Llama-class) achieves frontier-tier benchmark scores at <=$2 per 1M output tokensSource: 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.
- 2026-06-01 → 2027-06-30pendingFrontier reasoning model API price drops below $5 per million output tokensHow: 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 pageSource: 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.
- 2026-04-01 → 2027-08-31pendingFlagship frontier model (Opus / GPT-5.5 Pro / Ultra-class) holds price floor near $30+ per 1M outputHow: Flagship reasoning tier (GPT-5.5 Pro at $180/M out, Opus class) remains at >=$30 per 1M output tokens through 2027Source: 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.
- 2027-01-01 → 2027-08-31pendingAverage industry cost-per-reasoning-task falls >=80% from 2025 baselineHow: Industry analyst report (Artificial Analysis, a16z, Andreessen) shows weighted-average inference cost per million tokens declining >=80% from January 2025 baselineSource: https://www.morphllm.com/claude-vs-chatgptconf 65%
What if this resolves?
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Evidence chain
Network propagation neighbors
Top incoming (parents)
Edges that influence THIS node's belief
| Kind | Node | Their prob | P(c|s=T) | P(c|s=F) | Δ implied |
|---|---|---|---|---|---|
| prereq | 234_012 Anthropic revenue will cross OpenAI revenue in middle of 202 — Peter Diamandis | 67.1% | 0.650 | 0.050 | -0.097 |
| prereq | SEM_042 2025 will be the definitive year that agentic systems finall — Kevin Weil | 73.8% | 0.650 | 0.050 | -0.059 |
| prereq | 235_002 Anthropic will exceed OpenAI in revenue this year (2026). — Dave Blundin | 74.6% | 0.650 | 0.050 | -0.054 |
| prereq | SEM_012 Nvidia quadrupled chip production output while only doubling — Jensen Huang | 75.0% | 0.650 | 0.050 | -0.050 |
| killer | TK03 AI Regulatory Moratorium (EU/US Capability Freeze) | 10.0% | 0.050 | 0.650 | +0.044 |
Top outgoing (children)
Predictions THIS node influences
| Kind | Node | Their prob | P(c|s=T) | P(c|s=F) | Δ implied |
|---|---|---|---|---|---|
| prereq | 232_055 We're exiting the industrial age permanently as recursive se — Peter Diamandis | 35.5% | 0.700 | 0.050 | +0.044 |
| prereq | 235_030 Ray Kurzweil predicts Longevity Escape Velocity (LEV) by 203 — Ray Kurzweil | 39.2% | 0.750 | 0.050 | +0.033 |
| prereq | SEM_034 True artificial general intelligence will be achieved betwee — Demis Hassabis | 28.7% | 0.550 | 0.050 | +0.031 |
| prereq | 241_043 ASI will arrive within 2 years to 5 years to this next decad — Peter Diamandis | 35.9% | 0.650 | 0.050 | +0.014 |
| prereq | CMQ_002 By 2028, AI systems will reach 'independent researcher' leve — Sam Altman | 31.4% | 0.550 | 0.050 | +0.005 |
Ticker exposure
Beneficiaries (23)
Adverse (6)
Prerequisites (8)
| Type | Pred | Title | Domain | Lag |
|---|---|---|---|---|
| prereq | 235_002 | Anthropic will exceed OpenAI in revenue this year (2026). | AI | — |
| prereq | SEM_008 | Training runs costing $10 billion for a single model will commence sometime in 2025. | AI | — |
| prereq | 234_012 | Anthropic revenue will cross OpenAI revenue in middle of 2026 | Markets/Stocks | — |
| prereq | SEM_012 | Nvidia quadrupled chip production output while only doubling human headcount — achieved by deploying AI coding tools (Cursor, Claude Code) across engineering. | AI/Manufacturing | — |
| prereq | SEM_042 | 2025 will be the definitive year that agentic systems finally hit the mainstream. | AI/Agents | — |
| killer | TK14 | Superbubble Pop (S&P 500 -40%, Moonshot Capital Evaporates) | — | — |
| killer | TK01 | AGI Capability Plateau (2026-27 Training Stall) | — | — |
| killer | TK03 | AI Regulatory Moratorium (EU/US Capability Freeze) | — | — |
Dependents (5)
| Type | Pred | Title | Domain | Lag |
|---|---|---|---|---|
| prereq | 235_030 | Ray Kurzweil predicts Longevity Escape Velocity (LEV) by 2033. | Biotech/Longevity | — |
| prereq | 232_055 | We're exiting the industrial age permanently as recursive self-improvement unfolds. | AI | — |
| prereq | 241_043 | ASI will arrive within 2 years to 5 years to this next decade | AI | — |
| prereq | CMQ_002 | By 2028, AI systems will reach 'independent researcher' level — driving autonomous scientific discoveries without human intervention. | AI | — |
| prereq | SEM_034 | True 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)
| Sim | Source | Title | Market prob | Polarity | Reviewed | Published |
|---|---|---|---|---|---|---|
| 0.579 | manifold | Will I buy gasoline for more than $5/gallon this year (USA) | 37% | mentions | pending | 2026-05-16 |
| 0.574 | manifold | Will "Dairy cows make their misery expensive (but t..." make the top fifty posts in LessWrong's 2026 Annual Review? | 11% | mentions | pending | 2026-05-04 |
| 0.566 | manifold | Will Dan complain about the cost of NYC unprompted? | 69% | mentions | pending | 2026-05-16 |
| 0.551 | manifold | What grade will I get from my Enlightenment philosophy exam? | — | mentions | pending | 2026-05-28 |
Raw metadata
{
"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",
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"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",
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"ordinal": -8,
"source_id": "SEM_008",
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},
{
"kind": "prereq",
"label": "Anthropic revenue will cross OpenAI revenue in middle of 2026",
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"ordinal": -7,
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},
{
"kind": "prereq",
"label": "Anthropic will exceed OpenAI in revenue this year (2026).",
"status": "hit",
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"source_id": "235_002",
"expected_date": "2026-04-29",
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},
{
"kind": "prereq",
"label": "2025 will be the definitive year that agentic systems finally hit the mainstream.",
"status": "hit",
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"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)