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Google Just Cut the Price of Its Coding AI in Half, and the Whole Industry Is Racing Down With It
Ep. 150 03:39

Google Just Cut the Price of Its Coding AI in Half, and the Whole Industry Is Racing Down With It

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About This Episode

Google launched Gemini 3.7 Flash on August 13 at half the price of the model it replaced three weeks earlier, while OpenAI opened an invite-only tier of GPT-5.6 Sol running 14 times faster on Cerebras chips. Average AI inference prices have fallen to their lowest level of the year, which means the competitive question has moved from which model is smartest to which one is cheap enough to point at ordinary work.

Our Take

The AI labs stopped competing on intelligence this week and started competing on price, and the price per task is the number that actually decides which jobs get handed to a machine.