Recently, I was thinking again about where AI is going.
I was wondering what I as a developer should, or should not, be building.
I wrote a post about my thoughts and concluded two things:
Firstly, cloud-based AI gets much cheaper every year, namely about 90% cheaper.
If your AI application costs $1 per day to run now, next year it'll cost 10 cents, and just a penny the year after that.
And while the price drops, the models keep getting better.
Secondly, the best AI tools don't necessarily come from the big technology companies.
Take Cursor AI for example.
Microsoft had everything needed to make the best AI code editor - the most GPUs, the most popular code editor (Visual Studio), and years of AI experience.
But a small startup built Cursor, which many developers now prefer.
The same happened with DeepSeek.
Google, Meta, Microsoft, and Amazon are all spending billions on developing the best models.
But DeepSeek came out of nowhere and delivered great results.
This isn't new.
The same thing happened with Google in the early 2000s.
Altavista was the biggest search engine until Google, a small newcomer, made something better.
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