> This is the first time a major provider has backtracked on the price of an established model. While it may seem like a simple adjustment, we believe this signals a turning point. The industry is no longer on an endless downward slide of cost. Instead, we’ve hit a fundamental soft floor on the cost of intelligence, given the current state of hardware and software.
That is assuming pricing and price drops only occurred because of cost reductions caused by technical advancements. While that certainly played a role in it, that disregards the role investiment money takes.
Maybe we've hit a wall in the "Moore's law for AI", or maybe it's just harder to justify these massive investments while all you have to show for are marginal improvements to the eyes of these investors, which are becoming increasingly anxious to have their money back.