According to a Deutsche Bank report published on October 14, 2026, the cost of reaching a specific level of AI performance has fallen by nearly 47% every quarter since 2023, representing a 13-fold annual reduction when compounded. This cost deflation is roughly four times faster than DNA sequencing declines, six times faster than general compute gains, and eighteen times faster than lithium-ion battery improvements. Capital expenditure on AI infrastructure by US and Chinese hyperscalers is projected to approach $1 trillion in 2026. The bank estimates that achieving artificial general intelligence may require roughly 1,000 times the compute available today.
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