# AI Price-Performance
**Entity class:** Economic metric
**Domain:** Artificial intelligence / science / political economy
**Maturity:** Developed
## Definition
**AI Price-Performance** measures how much useful machine capability can be purchased for a given amount of money, compute, energy, or time.
## Mechanism and Consequence
Rapid improvement expands the feasible market for intelligence: tasks that were uneconomic become ordinary, while frontier users reinvest savings into larger workloads and create new demand.
## Relationships
- [[wiki/AI Economy|AI Economy]]
- [[wiki/Abundance Economics|Abundance Economics]]
- [[wiki/Compute Scarcity|Compute Scarcity]]
- [[wiki/AI Progress|AI Progress]]
## Source Dossiers
- [[research/AI Is Now So Good They Will Pay You to Quit|AI Is Now So Good They Will Pay You to Quit]]
- [[research/Super Intelligence Week Index of Statements from the White House Luncheon|Super Intelligence Week Index of Statements from the White House Luncheon]]
- [[research/Jensen Pushes Back on Doomers Moonshots Live|Jensen Pushes Back on Doomers Moonshots Live]]
## Simple Reminders, Quotations, and Thoughts
> The abundance thesis is visible in AI price-performance: the models are becoming twice as capable and twice as cheap at an accelerating rate.
> **— Adapted from Peter Diamandis**, *MOONSHOTS Live, September 25, 2026*
[[reminders/Abundance/AI Is Becoming Twice as Capable and Twice as Cheap by Peter Diamandis|AI Is Becoming Twice as Capable and Twice as Cheap by Peter Diamandis]]