Brian Armstrong Says AI Costs Are Crashing—But One Constraint Could Hold The Industry Back - Coinbase Glo

Coinbase Global Inc.

(NASDAQ:COIN) CEO Brian Armstrong believes that rapidly falling AI costs will reshape how businesses use artificial intelligence (AI), with cheaper models taking over most workloads while demand for computing power continues to surge.

AI Costs Are Falling Fast, But Demand Could Rise Faster In a post on X, Armstrong weighed in on the economics of AI while responding to comments from Delphi Ventures founding partner Tom Shaughnessy, who warned that the industry's current pricing structure may be unsustainable.

Armstrong argued that demand for AI remains "near infinite," predicting that roughly 80% of workloads could shift to models that are 99% cheaper within the next 12 to 18 months.

The remaining 20%, he said, will likely rely on cutting-edge systems for tasks requiring maximum performance, including scientific research and advanced AI agents.