AI models are projected to become twice as powerful as the current Fable 5 model within the next year, according to the Epoch's Capabilities Index (ECI). The ECI, which evaluates AI performance across over 40 benchmarks, recorded a significant improvement rate increase from 8 to 15 points annually since April 2024. This trend suggests a potential 2-3x enhancement in model capabilities by next year. Additionally, the cost of operating AI models is decreasing rapidly, with expenses halving every two months. This cost reduction, combined with the anticipated capability improvements, means that more powerful AI models will be accessible at lower costs, potentially running on existing hardware.