The short version
- The cost of running AI models has fallen sharply.
- Open models and competition are squeezing prices.
- Users get more capability for the same money.
- Free tiers keep getting more generous.
If it feels like you are getting more AI for your money than a year ago, you are not imagining it. The underlying cost of running capable models has dropped dramatically, and that saving is flowing through to the tools you actually use.
What is pushing prices down
Three forces are stacking up. Models have become far more efficient to run, so each request costs providers less. Strong open-weight models give companies a free-ish alternative to licensing, which pressures everyone on price. And fierce competition among assistants means no one can afford to charge a premium for long.
What it means for you
The practical result is simple: the same monthly subscription buys noticeably more than it did — higher limits, better models, more features. Free tiers, once a taste test, now cover most everyday needs. For casual users, paying for AI is becoming optional rather than assumed.
The catch
Cheaper does not mean the priciest plans are pointless — heavy users and businesses still hit limits that justify premium tiers. But for most individuals, the smart move is to ride the free and low-cost tiers and let competition keep working in your favour.