Too Cheap To Meter: AI prices cut 50-70% in last 30 days

**Gemini 1.5 Flash** has cut prices by approximately **70%**, offering a highly competitive free tier of **1 million tokens per minute** at **$0.075/mtok**, intensifying the AI model price war. Other significant price reductions include **GPT-4o** (~50% cut to **$2.50/mtok**), **GPT-4o mini** (70-98.5% cut to **$0.15/mtok**), **Llama 3.1 405b** (46% cut to **$2.7/mtok**), and **Mistral Large 2** (62% cut to **$3/mtok**). **Deepseek v2** introduced context caching, reducing input token costs by up to **90%** to **$0.014/mtok**. New model releases include **Llama 3.1 405b**, **Sonnet 3.5**, **EXAONE-3.0** (7.8B instruction-tuned by LG AI Research), and **MiniCPM V 2.6** (vision-language model combining SigLIP 400M and Qwen2-7B). Benchmarks show **Mistral Large** performing well on ZebraLogic and **Claude-3.5** leading LiveBench. **FlexAttention**, a new PyTorch API, simplifies and optimizes attention mechanisms. **Andrej Karpathy** analyzed RLHF, highlighting its limitations compared to traditional reinforcement learning. Google DeepMind research on compute-optimal scaling was also summarized.