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2026-02-22-ai-cost-curves.qmd

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cache: true # caches chunk output
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---
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It's useful to draw plots showing achievement vs expenditure, comparing humans & agents.
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You can read the y-axis in a few ways: (1) score on a benchmark; (2) quality of the output; (3) score on an optimization problem.
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Observations:
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1. Generally, agents are cheaper but less capable.
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1. In most cases agents are cheaper than humans but hit a ceiling in capability.
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2. Can simplify to say agents are free, without much loss.
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3. We can see three types of growth: (A) cheaper inference; (B) ;
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4. This theory maps exactly to time horizon.
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5. Can derive these curves from a theory (???).
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3. We can see three types of agent growth: (A) cheaper inference; (B) expanded capabilities; (C) test-time growth.
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4. Distillation shifts cost curves left.
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5. This observation is a nice fit for time horizon (more discussion required)
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6. Q: can you derive these curves from a theory of task complexity?
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Basic plot:
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It's super useful to draw plots showing achievement vs expenditure for humans vs computers, like this:
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```{tikz}
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\input{2026-02-22-ai-cost-curves-tikz-helpers.tex}
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\end{tikzpicture}
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```
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You can read the y-axis in a few ways: (1) score on a benchmark; (2) quality of the output; (3) score on some optimization problem.
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Some observations:
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Three types of agent change:
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```{tikz}
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\input{2026-02-22-ai-cost-curves-tikz-helpers.tex}
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\begin{tikzpicture}[scale=4]
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\AICostAxes
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%\AICostGaussianCDF{0.7}{0.2}{0.90}{black!60}{human}{1pt}
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\AICostGaussianCDF{0.5}{0.2}{0.50}{red!60,dashed}{}{-2pt}
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\AICostGaussianCDF{0.3}{0.2}{0.50}{red!60}{}{-2pt}
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\AICostGaussianCDF{0.5}{0.2}{0.70}{red!60}{}{-2pt}
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\AICostGaussianCDF{0.6}{0.3}{0.70}{red!60}{}{-2pt}
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\node[red!60] at (0.6,0.83) {\footnotesize (more capable)};
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\draw[->,red!60] (0.6,0.8) -- (.7,0.6);
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\node[red!60] at (1.5,0.55) {\footnotesize (more returns to inference)};
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\draw[->,red!60] (1.05,0.55) -- (0.9,0.55);
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\node[red!60] at (0.2,0.53) {\footnotesize (cheaper)};
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\draw[->,red!60] (0.2,0.5) -- (0.3,0.3);
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\end{tikzpicture}
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```
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# additional plots
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1. Today, for a given levcomputers are either cheaper than humans or .
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Extra plots:
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```{tikz}
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_freeze/2026-02-22-ai-cost-curves/execute-results/html.json

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{
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"hash": "f38dc45ddf65490b3548aa1309e7dd09",
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"hash": "c8be30058109d0999d2e5f6ffb7fa512",
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"result": {
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"engine": "knitr",
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"markdown": "---\ntitle: AI cost curves\ndraft: true\nengine: knitr\nexecute:\n echo: false\n warning: false\n error: false\n cache: true # caches chunk output\n---\n\n\n\nThree spaces\n: \n - three\n \n - three\n\nFour spaces\n: \n - four\n \n - four\n\n\n\n\nObservatinons:\n\n1. Generally, agents are cheaper but less capable.\n2. Can simplify to say agents are free, without much loss.\n3. We can see three types of growth: (A) cheaper inference; (B) ; \n4. This theory maps exactly to time horizon. \n5. Can derive these curves from a theory (???).\n\n\n\nIt's super useful to draw plots showing achievement vs expenditure for humans vs computers, like this:\n\n\n\n::: {.cell}\n::: {.cell-output-display}\n![](2026-02-22-ai-cost-curves_files/figure-html/unnamed-chunk-1-1.png){width=672}\n:::\n:::\n\n\n\nYou can read the y-axis in a few ways: (1) score on a benchmark; (2) quality of the output; (3) score on some optimization problem.\n\nSome observations:\n\n1. Today, for a given levcomputers are either cheaper than humans or .\n\n\n\n\n::: {.cell}\n::: {.cell-output-display}\n![](2026-02-22-ai-cost-curves_files/figure-html/unnamed-chunk-2-1.png){width=672}\n:::\n:::\n",
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"markdown": "---\ntitle: AI cost curves\ndraft: true\nengine: knitr\nexecute:\n echo: false\n warning: false\n error: false\n cache: true # caches chunk output\n---\n\n\n\nIt's useful to draw plots showing achievement vs expenditure, comparing humans & agents.\n\nYou can read the y-axis in a few ways: (1) score on a benchmark; (2) quality of the output; (3) score on an optimization problem.\n\nObservations:\n\n1. In most cases agents are cheaper than humans but hit a ceiling in capability.\n2. Can simplify to say agents are free, without much loss.\n3. We can see three types of agent growth: (A) cheaper inference; (B) expanded capabilities; (C) test-time growth. \n4. Distillation shifts cost curves left.\n5. This observation is a nice fit for time horizon (more discussion required)\n6. Q: can you derive these curves from a theory of task complexity?\n\nBasic plot:\n\n\n\n\n::: {.cell}\n::: {.cell-output-display}\n![](2026-02-22-ai-cost-curves_files/figure-html/unnamed-chunk-1-1.png){width=672}\n:::\n:::\n\n\n\n\nThree types of agent change:\n\n\n\n::: {.cell}\n::: {.cell-output-display}\n![](2026-02-22-ai-cost-curves_files/figure-html/unnamed-chunk-2-1.png){width=672}\n:::\n:::\n\n\n\n# additional plots\n\nExtra plots:\n\n\n\n\n::: {.cell}\n::: {.cell-output-display}\n![](2026-02-22-ai-cost-curves_files/figure-html/unnamed-chunk-3-1.png){width=672}\n:::\n:::\n",
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"supporting": [],
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"filters": [
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