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While AI capabilities have surged, the belief that this progress stems from cheaper computing costs is being challenged by METR data, revealing a different story behind technological advancement.
AI has made significant strides over the past few years, but a common narrative is that these improvements are driven by reductions in computational costs. However, recent evidence from the Measure of Effective Training Resources (METR) suggests otherwise. Let’s dive into the details and understand why this matters for practitioners.
The METR framework measures how effectively a model uses its training resources to achieve better performance. Here are the key findings:
One of the most interesting insights is that progress at a fixed computational cost has been just as rapid as when costs were higher. This suggests that:

While the METR framework provides valuable insights, it has its limitations:
Looking ahead, the trend towards more efficient inference scaling will likely accelerate progress. Here’s why:
The evidence from METR challenges the notion that AI capability improvements are primarily driven by cost reductions. Instead, it highlights the importance of efficiency gains and architectural innovations. For practitioners, this means focusing on optimizing resource usage and exploring new architectures can lead to significant performance improvements without necessarily requiring more computational power.
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About the author
Kai built ML infrastructure at a Bay Area startup before developing an obsession with transformer architectures and inference optimisation that eventually pulled him out of product work entirely. A stint at a compute research lab sharpened his instinct for what actually matters in a model release versus what is marketing. He writes from the inside — from the perspective of someone who has debugged the systems he is describing at three in the morning. He is allergic to hype and instinctively drawn to the unglamorous plumbing questions that everyone else skips over.
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30 March 2026
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