# Epoch AI report says AI costs are dropping faster than Moore's Law

> The study finds AI expenses fall about 50% each quarter, making them 13 times cheaper per year than a year ago.

Oossa · 2026-09-30 · https://oossa.com/en/epoch-ai-report-says-ai-costs-are-dropping-faster-than-moore-s-law

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AI research firm Epoch AI released a new report that says the cost of running artificial‑intelligence models has been falling dramatically. The study finds prices drop just under 50 % every three months and end up about 13 times lower after a year. That rate outpaces the historic speed of Moore's Law for computer chips and also beats the cost declines seen in lithium batteries and DNA sequencing.

## The facts

- AI costs down ~50 % each quarter, 13 × cheaper per year
- Report released by Epoch AI, reported Sep 30 2026

## Why it matters

Cheaper AI means more companies and developers can use the technology, widening its impact.

## Sources & references

1. [The price of AI is crashing faster than the rate of Moore's Law, report suggests](https://www.tomshardware.com/tech-industry/artificial-intelligence/the-price-of-ai-is-crashing-faster-than-the-rate-of-moores-law-report-suggests-intelligence-costs-are-in-freefall-outpacing-comparative-technologies-like-compute-dna-sequencing-and-lithium-batteries) – Tom's Hardware, 2026-09-30

Last updated: 2026-09-30