When evaluating the historical evolution of the ICT sector, there is one important aspect that stands out. Prices have come down in substantial segments of the sector. This especially holds true for hardware such as phones and PCs but also for prices of mobile communication. One of the other notable aspects in this context is the provision of free services, through open-source projects or advertising driven models. Nevertheless, the main cause of falling prices is the advancement in semiconductor manufacturing capabilities, in line with Moore’s Law. Because of this, semiconductor prices have come down, leading to lower prices for end-products, such as PCs, tablets, and mobile phones. Because microchips are an important cost component of AI models, we expect the replacement cost of the existing infrastructure needed to run AI models to come down over time as well.
