AI & Enterprise

AI model economics shift as cost recovery for cutting-edge models gets harder

The share of AI use accounted for by cost-effective models is rising as demand concentrates on cheaper systems with slightly lower performance rather than top-tier models. Venture capitalist Tomasz Tunguz highlighted data showing most tokens on OpenRouter are handled by non-top models that are far cheaper. He said gains among leading models and narrowing performance gaps, along with buyer price sensitivity and vendor lock-in, may make it increasingly difficult to recoup training costs that can run into hundreds of millions of dollars.

Mobility

Surge in self-driving taxis in city centres raises unexpected incident issues

As self-driving robotaxis are deployed more widely in real-world operations, cases are increasing in which the vehicles cause problems in unexpected situations. A growing number of so-called edge cases can disrupt traffic flow and sometimes create scenes that may threaten safety. Waymo has expanded its fleet and converted services in several U.S. cities to fully autonomous driving, but it has also carried out multiple federal recalls since December.