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The cost-saving AI measure Coinbase's CEO is taking to keep costs 'roughly flat' while growing token usage

Coinbase CEO Brian Armstrong wrote on X that the crypto platform is "routing prompts to cheaper models when appropriate."

The cost-saving AI measure Coinbase's CEO is taking to keep costs 'roughly flat' while growing token usage

TL;DR

  • Coinbase CEO Brian Armstrong is focusing on using cheaper AI models for most tasks to control costs.
  • The company aims to keep AI expenses roughly flat while token usage grows exponentially.
  • Armstrong predicts that 80% of AI workloads will run on significantly cheaper models within 12-18 months.
  • Expensive, cutting-edge AI models will likely be reserved for 'IQ maxing' tasks such as scientific breakthroughs or agent orchestration.
  • This strategy marks a departure from the previous trend of prioritizing the use of the latest and most expensive AI models.