AI Breakdown

Your AI Is Cheap Because You Are Paying With Permission

AI Breakdown

Show Notes

๐€ ๐ฉ๐ž๐ซ๐ฌ๐จ๐ง๐š๐ฅ ๐€๐ˆ ๐š๐ ๐ž๐ง๐ญ ๐ฌ๐ก๐ข๐ฉ๐ฉ๐ž๐ ๐ญ๐ก๐ข๐ฌ ๐ฐ๐ž๐ž๐ค ๐ญ๐ก๐š๐ญ ๐ข๐ฌ ๐š๐ฅ๐ฐ๐š๐ฒ๐ฌ ๐จ๐ง, ๐ก๐š๐ฌ ๐š ๐›๐ซ๐จ๐ฐ๐ฌ๐ž๐ซ, ๐š๐ง๐ ๐œ๐จ๐ง๐ง๐ž๐œ๐ญ๐ฌ ๐ญ๐จ ๐ฒ๐จ๐ฎ๐ซ ๐ข๐ง๐›๐จ๐ฑ, ๐œ๐š๐ฅ๐ž๐ง๐๐š๐ซ ๐š๐ง๐ ๐Ÿ๐ข๐ง๐š๐ง๐œ๐ž๐ฌ. ๐“๐ก๐ž ๐ก๐ž๐š๐๐ฅ๐ข๐ง๐ž ๐ฉ๐ซ๐จ๐ฆ๐ข๐ฌ๐ž: ๐ข๐ญ ๐ง๐ž๐ฏ๐ž๐ซ ๐ฌ๐ž๐ž๐ฌ ๐ฒ๐จ๐ฎ๐ซ ๐ฉ๐š๐ฌ๐ฌ๐ฐ๐จ๐ซ๐๐ฌ ๐จ๐ซ ๐œ๐š๐ซ๐ ๐ง๐ฎ๐ฆ๐›๐ž๐ซ๐ฌ. ๐ˆ๐ญ ๐ง๐ž๐ฏ๐ž๐ซ ๐ฌ๐ž๐ž๐ฌ ๐ญ๐ก๐ž ๐œ๐š๐ซ๐. ๐๐ฎ๐ญ ๐ข๐ญ ๐œ๐š๐ง ๐ฌ๐ฉ๐ž๐ง๐ ๐Ÿ๐ซ๐จ๐ฆ ๐ข๐ญ. ๐Ÿ˜ณ The twist: a lot of this week's permission was granted deliberately. By you. For a lower price. This week on ๐“๐ก๐ž ๐€๐ˆ ๐๐ซ๐ž๐š๐ค๐๐จ๐ฐ๐ง, Quentin and Stark continue the theme: ๐–๐ก๐š๐ญ ๐ก๐š๐ฉ๐ฉ๐ž๐ง๐ฌ ๐ฐ๐ก๐ž๐ง ๐€๐ˆ ๐ฌ๐ญ๐จ๐ฉ๐ฌ ๐š๐ฌ๐ค๐ข๐ง๐  ๐ฉ๐ž๐ซ๐ฆ๐ข๐ฌ๐ฌ๐ข๐จ๐ง? Everything got cheaper this week, and the cheapest options came with a clause. The guarantee on that agent is about what it knows, not what it can do. Three numbers that do not agree, which is the useful part: ๐Ÿ“Š ๐Ÿ“Š A new model costs about ๐Ÿ“๐Ÿ“ ๐œ๐ž๐ง๐ญ๐ฌ a task, ~a quarter of the leading one; its maker said only that it is more cost-effective, not as strong

๐Ÿ“Š Another model's real cost per task rose ๐Ÿ’๐ŸŽ% while its token price did not change, because it quietly spends more tokens to finish

๐Ÿ“Š In one test the expensive model won on quality in 24 minutes; the fast one was nearly as good in ๐Ÿ‘๐Ÿ• ๐ฌ๐ž๐œ๐จ๐ง๐๐ฌ The catch: the cheapest model on a major coding platform runs on a free tier called "contributor," because for free access the company may train on your inputs and outputs. Your move: ๐Ÿ”ด Open the terms of the AI tool you use most and find the clause about training on your inputs. ๐Ÿ”ด Check which tier you are on, since free and discounted usually differ. ๐Ÿ”ด Run one real job on a cheap and an expensive model, and compare the finished output, not the tokens. The tool with your customers in it. Every cheap deal was good. Just know which side you are on. ๐ŸŽ™๏ธ Stream on: โ–ถ๏ธ Youtube: https://www.youtube.com/@SMBAIHUB โ–ถ๏ธ Amazon Music: https://music.amazon.in/podcasts/b93fd52f-bc53-4ee9-98d7-3b9e10ea0e6f/ai-breakdown โ–ถ๏ธ Apple Podcast: https://podcasts.apple.com/in/podcast/ai-breakdown/id6799578599 โ–ถ๏ธ Web: smbaimagazine.com โ–ถ๏ธ Web: smbaipodcast.com Disclaimer: The information shared in this podcast is for general informational purposes only and should not be considered as direct financial or business advice. Always consult with a qualified professional for advice specific to your situation. This is an Independent commentary. Third-party excerpts are credited on screen or in the show notes. Some voices in this program are AI-generated.

More from AI Breakdown

Oct 22, 2026

๐Ž๐ง๐ž ๐ž๐ฌ๐ญ๐ข๐ฆ๐š๐ญ๐ž ๐Ÿ๐จ๐ซ ๐ฅ๐ž๐ญ๐ญ๐ข๐ง๐  ๐ก๐ข๐ฌ ๐€๐ˆ ๐š๐ ๐ž๐ง๐ญ๐ฌ ๐ฎ๐ฌ๐ž ๐ฌ๐จ๐Ÿ๐ญ๐ฐ๐š๐ซ๐ž ๐ก๐ž ๐š๐ฅ๐ซ๐ž๐š๐๐ฒ ๐ฉ๐š๐ฒ๐ฌ ๐Ÿ๐จ๐ซ: ๐š๐ฌ ๐ฆ๐ฎ๐œ๐ก ๐š๐ฌ $๐Ÿ๐Ÿ’๐ŸŽ,๐ŸŽ๐ŸŽ๐ŸŽ ๐š ๐ฒ๐ž๐š๐ซ. ๐Ÿ˜ณ Jason Lemkin of SaaStr asked the question. His revenue agent alone makes between 35,000 and 40,000 API calls a day, and a price per call that looks trivial turns into a large number by month end. This week on ๐“๐ก๐ž ๐€๐ˆ ๐๐ซ๐ž๐š๐ค๐๐จ๐ฐ๐ง: ๐’๐ฆ๐š๐ฅ๐ฅ ๐๐ฎ๐ฌ๐ข๐ง๐ž๐ฌ๐ฌ. ๐๐ข๐  ๐€๐ฆ๐›๐ข๐ญ๐ข๐จ๐ง๐ฌ. ๐‹๐ž๐š๐ง ๐›๐ฎ๐๐ ๐ž๐ญ. Your agent is a new kind of customer, and vendors have noticed. The next line in your software budget may be one nobody has written yet. Inside the episode: ๐Ÿ”ด That $240,000 against the $5 Postgres instance the agent itself suggested, and why the contract and the security review come before the saving

Oct 21, 2026

๐Ÿ–๐Ÿ% ๐จ๐Ÿ ๐Ÿ๐ข๐ซ๐ฆ๐ฌ ๐ฐ๐ข๐ญ๐ก ๐Ÿ๐ž๐ฐ๐ž๐ซ ๐ญ๐ก๐š๐ง ๐Ÿ๐ข๐ฏ๐ž ๐ฉ๐ž๐จ๐ฉ๐ฅ๐ž ๐ฌ๐ญ๐ข๐ฅ๐ฅ ๐›๐ž๐ฅ๐ข๐ž๐ฏ๐ž ๐€๐ˆ ๐ข๐ฌ ๐ง๐จ๐ญ ๐Ÿ๐จ๐ซ ๐ญ๐ก๐ž๐ฆ. ๐Ÿ‘€ This week Kree and Varun sit down in studio with Mehnaz Tabassum, social entrepreneur and one of the founders of CogniCo AI Consulting, which exists to help nonprofits, lean teams and changemakers adopt AI on tight budgets. This week on ๐“๐ก๐ž ๐€๐ˆ ๐๐ซ๐ž๐š๐ค๐๐จ๐ฐ๐ง: ๐’๐ฆ๐š๐ฅ๐ฅ ๐๐ฎ๐ฌ๐ข๐ง๐ž๐ฌ๐ฌ. ๐๐ข๐  ๐€๐ฆ๐›๐ข๐ญ๐ข๐จ๐ง๐ฌ. ๐‹๐ž๐š๐ง ๐›๐ฎ๐๐ ๐ž๐ญ. Named Atlantic Canada's most inspiring immigrant, she has built four purpose driven ventures from the ground up, and was once one of the youngest senior IT project managers in the Government of Canada. She knows the technology, the mission, and the reality of doing a great deal with very little. Inside the conversation: ๐Ÿ”ด The adoption gap between small and large businesses shrank from 1.8x in 2024 to about 1.2x in 2025, and 91% of small businesses using AI say it lifted revenue

Oct 20, 2026

๐๐ฎ๐ฌ๐ข๐ง๐ž๐ฌ๐ฌ๐ž๐ฌ ๐›๐จ๐ฎ๐ ๐ก๐ญ ๐ฆ๐จ๐ซ๐ž ๐€๐ˆ ๐š๐ง๐ ๐ฉ๐š๐ข๐ ๐ฅ๐ž๐ฌ๐ฌ ๐Ÿ๐จ๐ซ ๐ข๐ญ. ๐๐จ๐›๐จ๐๐ฒ ๐ข๐ง๐ฌ๐ข๐๐ž ๐ญ๐ก๐ž๐ฆ ๐๐ž๐œ๐ข๐๐ž๐ ๐ญ๐ก๐š๐ญ. ๐Ÿ‘€ Ramp's latest reading shows token spend down 5.2% while the number of tokens used went up. The explanation on offer is price competition between the big labs, which means the saving arrived from outside the business entirely. This week on ๐“๐ก๐ž ๐€๐ˆ ๐๐ซ๐ž๐š๐ค๐๐จ๐ฐ๐ง: ๐’๐ฆ๐š๐ฅ๐ฅ ๐๐ฎ๐ฌ๐ข๐ง๐ž๐ฌ๐ฌ. ๐๐ข๐  ๐€๐ฆ๐›๐ข๐ญ๐ข๐จ๐ง๐ฌ. ๐‹๐ž๐š๐ง ๐›๐ฎ๐๐ ๐ž๐ญ. A discount you did not plan for is a discount you will not keep, unless somebody is watching the bill. KPMG surveyed more than 2,100 senior leaders across 20 countries and found which habits separate the organisations with an established return from the ones still experimenting. Inside the episode: ๐Ÿ”ด 77% of the established group track AI costs on a dashboard, against 43% of the experimenters

Oct 19, 2026

๐…๐จ๐ฎ๐ซ๐ญ๐ž๐ž๐ง ๐ญ๐จ๐จ๐ฅ๐ฌ. $๐Ÿ๐Ÿ‘๐ŸŽ ๐š ๐ฆ๐จ๐ง๐ญ๐ก. ๐…๐จ๐ฎ๐ซ ๐จ๐Ÿ ๐ญ๐ก๐ž๐ฆ ๐ ๐ž๐ญ ๐จ๐ฉ๐ž๐ง๐ž๐ ๐ข๐ง ๐š ๐ง๐จ๐ซ๐ฆ๐š๐ฅ ๐ฐ๐ž๐ž๐ค. ๐Ÿ˜ณ Which is a team of fourteen where ten have never turned up. Most owners have never added that column up, because every line was small enough to ignore and they arrived one at a time. This week on ๐“๐ก๐ž ๐€๐ˆ ๐๐ซ๐ž๐š๐ค๐๐จ๐ฐ๐ง, we open a theme that runs all seven days: ๐’๐ฆ๐š๐ฅ๐ฅ ๐๐ฎ๐ฌ๐ข๐ง๐ž๐ฌ๐ฌ. ๐๐ข๐  ๐€๐ฆ๐›๐ข๐ญ๐ข๐จ๐ง๐ฌ. ๐‹๐ž๐š๐ง ๐›๐ฎ๐๐ ๐ž๐ญ. Output stopped being tied to headcount. For most of business history, doing more meant hiring more. That equation has quietly come apart, and the gap between what a lean team can attempt and what it can afford narrowed sharply in about eighteen months. Inside the episode: ๐Ÿ”ด Solo founded US startups rose from 23.7% in 2019 to 36.3% by the first half of 2025

Oct 18, 2026

๐‘๐จ๐›๐จ๐ญ๐ฌ ๐œ๐š๐ง ๐ฉ๐ก๐ฒ๐ฌ๐ข๐œ๐š๐ฅ๐ฅ๐ฒ ๐๐จ ๐š๐›๐จ๐ฎ๐ญ ๐Ÿ•๐Ÿ’% ๐จ๐Ÿ ๐ญ๐ก๐ž ๐ญ๐š๐ฌ๐ค๐ฌ ๐ข๐ง ๐€๐ฆ๐ž๐ซ๐ข๐œ๐š๐ง ๐ฃ๐จ๐›๐ฌ. ๐ˆ๐ญ ๐ข๐ฌ ๐ฐ๐จ๐ซ๐ญ๐ก ๐๐จ๐ข๐ง๐  ๐Ÿ๐จ๐ซ ๐ŸŽ.๐Ÿ‘% ๐จ๐Ÿ ๐ญ๐ก๐ž๐ฆ. ๐Ÿ˜ณ Both numbers come out of the same research. The distance between what a machine can do and what it makes sense to employ it for is enormous, and almost every argument about this ignores the second figure. This week on ๐“๐ก๐ž ๐€๐ˆ ๐๐ซ๐ž๐š๐ค๐๐จ๐ฐ๐ง, we close the theme: ๐–๐ก๐š๐ญ ๐ก๐š๐ฉ๐ฉ๐ž๐ง๐ฌ ๐ฐ๐ก๐ž๐ง ๐š๐ง ๐’๐Œ๐ ๐๐จ๐ž๐ฌ๐ง'๐ญ ๐ฃ๐ฎ๐ฌ๐ญ ๐ฎ๐ฌ๐ž ๐€๐ˆ, ๐›๐ฎ๐ญ ๐ฌ๐ญ๐š๐ซ๐ญ๐ฌ ๐ž๐ฆ๐ฉ๐ฅ๐จ๐ฒ๐ข๐ง๐  ๐ข๐ญ? Which ends where it had to end. When the thing you employed gets something badly wrong, whose name is on it. Inside the episode: ๐Ÿ”ด A finished model scrapped on safety grounds, for not quite meeting the bar on staying within scope and authorisation

See all episodes โ†’