The "wall" is in increasing intelligence per cost. No one is saying the absolute intelligence won't continue increasing, it's that the rate of intelligence increase per cost is falling from super-linear growth rates to linear at the same time the companies are backing out the investor-funded subsidies they were using to buy adoption and user growth numbers. You're correct that there is a 'trickle down' effect to lower tier models but OAI/Ant are clearly using this to segment customers by willingness to pay and their IPOs depend on extracting the maximum amount possible from each segment.
That's why the prices of frontier models have been skyrocketing, though they are using every trick imaginable to mask this being clear and obvious. They take with price increases, token deflation, shifting plan levels and limits but muddy things more by giving back some (but always eventually less) with resets, subs, etc.
The "wall" is in increasing intelligence per cost. No one is saying the absolute intelligence won't continue increasing, it's that the rate of intelligence increase per cost is falling from super-linear growth rates to linear at the same time the companies are backing out the investor-funded subsidies they were using to buy adoption and user growth numbers. You're correct that there is a 'trickle down' effect to lower tier models but OAI/Ant are clearly using this to segment customers by willingness to pay and their IPOs depend on extracting the maximum amount possible from each segment.
That's why the prices of frontier models have been skyrocketing, though they are using every trick imaginable to mask this being clear and obvious. They take with price increases, token deflation, shifting plan levels and limits but muddy things more by giving back some (but always eventually less) with resets, subs, etc.