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Coinbase CEO Expects AI Model Costs to Fall 99% for Most Use Cases
Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.
Coinbase CEO Brian Armstrong said AI model costs for most workloads could fall by 99% over the next 12 to 18 months as businesses increasingly rely on older and open-source models instead of premium offerings. Responding to concerns about rising API costs, Armstrong noted that Coinbase already routes many prompts to lower-cost models, helping keep expenses stable while AI generates around 40% of the company’s code. He cited advances in open-source models and rapidly declining inference costs as key drivers of the trend, with premium models likely reserved for frontier research and advanced AI applications.
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