1 September 2026
Top AI models lose pricing power as market floods with competitors
First reported
Exponential View ran this on .
- Frontier models, the most advanced AI systems available, are depreciating rapidly in value despite becoming more capable.
- Even top-performing models like those scoring highest on GPQA Diamond, a benchmark measuring AI reasoning, are losing their ability to command premium prices.
- This pricing erosion has accelerated since June as more companies release competing models to market.
How it was covered
Exponential ViewAzeem Azhar
The newsletter's State of the AI Economy 2026 report shows that frontier models are rapidly depreciating assets, with pricing power vanishing quickly even for top-performing models at GPQA Diamond grades. This trend has continued since their June report despite more models shipping to market.