Coinbase Routes 80% of AI Workloads to 99% Lower-Cost Models Within 12-18 Months, Says CEO

According to Coinbase CEO Brian Armstrong, within the next 12 to 18 months, 80% of artificial intelligence workloads will run on models costing 99% less, while the remaining 20% will rely on the latest generation models. Armstrong identified energy and computing power as the industry's primary bottlenecks, rather than the models themselves.

Coinbase is actively routing prompts on-demand to lower-cost models to maintain costs roughly stable despite exponential growth in token usage.