Dossier
Ameya Kanitkar
Coverage of Ameya Kanitkar in the Nexus archive.
- The next step in AI cost saving: treating frontier models like expensive consultants
AI consultants recommend using expensive frontier models for complex planning tasks and cheaper models for execution to optimize AI spending. This approach aims to improve ROI by reserving high-cost models for strategic work and delegating routine tasks to more affordable alternatives.
- AI is becoming a bargain hunter's market, with a few luxury models on top
AI token prices are fluctuating significantly, with commodity models becoming much cheaper while frontier models see price increases. Examples include DeepSeek's 2025 model causing a market repricing and OpenAI raising GPT-5.5 costs. Companies are shifting to metered pricing as AI usage grows, leading to higher spending on tokens despite uncertain productivity gains.