Free Intelligence Is Here. The Bubble Warnings Are Louder Than Ever. Now What?
Central banks are warning of an AI bubble while the cost of AI intelligence crashes toward zero. Grok 4.5 launches at half the price of rivals, GPT-4-class inference has fallen 50x in three years, and agentic tools are free. We break down the paradox at the heart of 2026's AI economy.
Lavamgam AIJul 10, 20267 min read readThe Debate
Here's the contradiction keeping AI investors up at night. On one side, the price of artificial intelligence is collapsing so fast that researchers at UC Berkeley's BAIR lab now use the phrase "virtually free intelligence" with a straight face. GPT-4-class capabilities that cost $30 per million tokens in early 2023 now run for under a dollar — sometimes under a dime. SpaceX just launched Grok 4.5 at half the price of its closest rivals. Microsoft is cutting costs by building its...