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For several years, AI pricing largely followed a predictable trajectory: new models emerged faster,
had more advanced capabilities, and generally cost less or only slightly more than their predecessors.
Budget models, designed to provide sufficient intelligence at minimal cost, were always considered
products with stable prices that were expected to even become cheaper over time. Examples of this approach included Flash from Google,
mini and nano from OpenAI, and Haiku from Anthropic.
This assumption was disproven following the release of Google's Gemini 3.5 Flash on May 19. The new model is priced at
$1.5 per million input tokens and $9 per million output tokens — three times more expensive than Gemini 3 Flash,
whose rates were $0.5 and $3 respectively. The sharp price increase for traditional low-budget segment products
marks the end of the era of subsidized access to artificial intelligence.
Experts warn that this change should not be mistakenly interpreted as an increase in AI's own cost of production.
Technological efficiency and the cost of creating a certain level of intelligence continue to rapidly decline.
What has changed is the approach of major AI development labs: instead of passing the savings on to consumers, they are now quietly figuring out,
how much customers are willing to pay. In contrast, DeepSeek deliberately maintains low prices, attracting users and demonstrating,
that affordability remains a competitive advantage.
This event has become a broader turning point in the artificial intelligence industry. As the sector matures, the economics of AI
depends less exclusively on technical capabilities and more on market strategy and consumer willingness
to bear increased costs. Analysts predict that the new price dynamics will shape the adoption of AI,
its accessibility, and the competitive environment for years to come.