While Anthropic, OpenAI and Google continue to charge an expensive amount of $$$ for in/output per million tokens and Microsoft complaining that AI costs more than hiring humans [0] and changes their pricing, it appears that Jevons paradox applies only to Deepseek.
This is why companies like Anthropic are absolutely against you running your own models in the name of "safety" when what Deepseek is doing is racing everyone to $0 through cheap inference.
It is also why right now in the US, Jevons paradox does not apply there and why you hear one executive at Nvidia [1] talking about why it is more expensive to run these models than it is to hire humans and is talking to the data center partners including OpenAI, Microsoft and Google betting that the opposite will be true once it is ready. That could take years.
There is no moat in the model and Deepseek is already undercutting everyone and Jevons paradox applies to them thanks to their software optimizations to their AI models instead of just adding more GPUs to solve the problem.
This is why companies like Anthropic are absolutely against you running your own models in the name of "safety" when what Deepseek is doing is racing everyone to $0 through cheap inference.
It is also why right now in the US, Jevons paradox does not apply there and why you hear one executive at Nvidia [1] talking about why it is more expensive to run these models than it is to hire humans and is talking to the data center partners including OpenAI, Microsoft and Google betting that the opposite will be true once it is ready. That could take years.
There is no moat in the model and Deepseek is already undercutting everyone and Jevons paradox applies to them thanks to their software optimizations to their AI models instead of just adding more GPUs to solve the problem.
Good.
[0] https://fortune.com/2026/05/22/microsoft-ai-cost-problem-tok...
[1] https://news.ycombinator.com/item?id=47941609