AI inference costs at a fixed performance level are declining 99.99% annually, driving explosive demand even as prices fall. OpenAI’s annualized revenue run rate has surged from $20 billion to $70 billion, demonstrating unprecedented growth dynamics where lower costs directly fuel adoption rather than compressing margins. These rapid cost declines are expected to permeate the broader economy, boosting productivity and profitability while creating "good deflation" that pushes inflation significantly below investor expectations. This environment could support higher interest rates driven by stronger real GDP growth, with forecasts pointing to high single-digit expansion comparable to the PC revolution era.