AI Cut Reasoning Costs 13x by Optimizing Itself

How AI systems cut flagship reasoning costs by 13x in just four months through self-optimizing kernels, speculative decoding improvements, and smarter infrastructure. The episode also explores the harness paradox: why context management, orchestration, and agent tooling can dramatically change benchmark results and real-world productivity. Show Notes [AINews] GPT 5.6 price cut by 20%-80%: Cost of GPT 5.4 Intelligence dropped 13x in 4 months due to GPT 5.6 recursive self-optimization: https://www.latent.space/p/ainews-gpt-56-price-cut-by-20-80