Economics

23 posts tagged economics.

Oct 20, 2026

Vector Databases in 2026: Do You Need One, or Is pgvector Enough?

An engineer's guide to vector databases in 2026: pgvector 0.8.7, Pinecone, Qdrant, Milvus 3.0, Weaviate, turbopuffer, Amazon S3 Vectors and Elasticsearch compared on price and architecture, why the benchmarks mislead, and when Postgres is enough.

13 min
Oct 20, 2026

Serverless in 2026: Lambda vs Cloud Run vs Workers, and When It Costs More

Serverless in 2026 explained: AWS Lambda Managed Instances, durable functions, SnapStart and the new Web Functions, Cloud Run GPUs and worker pools, Azure Container Apps, Cloudflare Containers and Vercel Fluid compute, with a list-price comparison and the workloads where serverless costs more.

14 min
Oct 20, 2026

Self-Hosting vs SaaS in 2026: 37signals Saved $2M a Year. Should You?

A balanced look at self-hosting vs SaaS and cloud repatriation in 2026: 37signals' published cloud exit numbers, Ahrefs and Dropbox, what the surveys measure, Coolify, Dokploy and Kamal, the ops cost nobody invoices, and a break-even rule.

13 min
Oct 20, 2026

Self-Hosting LLMs vs API Costs in 2026: The 62% Utilisation Break-Even

Self-hosting an open LLM vs paying per token in October 2026: H100 prices from $1.17 to $4.29 an hour, 8,973 tokens/s per GPU for gpt-oss-120b on vLLM, a $0.20 per million API price, the utilisation each price needs to break even, and the ops costs the spreadsheet leaves out.

13 min
Oct 20, 2026

RAG vs Long Context vs Fine-Tuning in 2026: 1M Tokens Isn't Free

RAG vs long context vs fine-tuning in 2026: current 1M-token context windows and prices, what context rot, NoLiMa and RULER show about long-context accuracy, where RAG fails, the per-query cost math, and a decision framework you can apply this quarter.

13 min
Oct 20, 2026

Kubernetes Cost Optimization in 2026: 8% CPU Use and What Fixes It

Kubernetes cost optimisation as of October 2026: Cast AI measures 8% CPU and 20% memory utilisation, Datadog puts 83% of container cost on idle, plus OpenCost vs IBM Kubecost 3.0, Karpenter 1.15 Balanced consolidation, in-place resize, spot and Graviton.

12 min
Oct 20, 2026

Is Fine-Tuning LLMs Worth It in 2026? Prices, LoRA, RFT and OpenAI's Exit

When fine-tuning an LLM beats prompting and RAG in 2026: OpenAI is winding down its fine-tuning API, Google and AWS added RL tuning, LoRA matches full fine-tuning when configured right, and a 5,000-example run costs $5 to $300 depending on where you train it.

14 min
Oct 5, 2026

Model Collapse in 2026: The Loop Nobody Runs, a 40% Synthetic Phi-4, a 49.9% AI Web, and 300T Human Tokens Left

What the model-collapse research tested versus the headline: Shumailov's Nature loop deletes real data every generation and takes OPT-125m from 20 to 28 perplexity, while accumulating data bounds the error; my 100-generation Gaussian experiment shows median variance falling from 0.98 to 0.36 under replacement and holding at 0.98 under accumulation; how Phi-4 (40% synthetic), Llama 3, DeepSeek-R1 (800k samples), Qwen3, Kimi K2 and Nemotron-CC-v2 (38%) actually use it; Epoch's 300T-token stock, Graphite's 49.9% AI web, Cloudflare's 38,065:1 crawl ratio and the $1.5B Bartz settlement.

15 min
Oct 5, 2026

The 2026 SaaS Selloff: IGV Fell 36%, Then Rose 45%. Revenue Grew 11% to 37% the Whole Time

The SaaSpocalypse checked against filings: Anthropic's Cowork plugins on 30 January, Thomson Reuters' worst day ever on 3 February, $285 billion gone in a day and nearly a trillion in a week, a second leg on Mythos in April, IGV down 36 percent to its 10 April low and up 45 percent since; against that, Q2 2026 revenue growth of 11 percent at Salesforce, 24 at ServiceNow, 36 at Datadog and 37 at Snowflake, median retention flat at 110 percent, median multiples from 4.9x to 3.0x to 4.2x, 4,000 Salesforce support roles, Klarna's reversal and $65 billion of Anthropic run-rate.

13 min
Oct 5, 2026

Observability in 2026: OpenTelemetry Graduated, the Collector Is Still v0.162, eBPF Instrumentation Is v0.14, and Datadog Bills $1.12B a Quarter

The non-AI state of observability in 2026 from primary sources: OpenTelemetry graduated from CNCF in May with 12,000 contributors from 2,800 companies, yet the Collector distribution is v0.162.0 with mixed component stability, profiles are alpha, messaging conventions are still Development and OBI, the donated Beyla, is v0.14.0. Datadog grew 36 percent to $1.12B in Q2, cost is the top concern for 31 percent of 1,363 surveyed engineers, and the levers that move the bill (tail sampling, OTTL filtering, cardinality limits, columnar storage, Arrow transport) live in the pipeline you run yourself.

13 min
Oct 5, 2026

GPU Clouds in 2026: H100s at $2.59 an Hour, $104B of CoreWeave Backlog on $35B of Debt, and a Six-Year Bet on Silicon

The GPU rental economy from filings and price pages fetched on 5 October 2026: H100 hours that fell from about $8 in 2023 to a $1.70 trough in October 2025 and recovered to $2.59 on the transacted index while list prices rose 25 percent; CoreWeave's $2.58B quarter, $103.7B backlog, $35.1B of debt from 15 percent DDTLs to a 5.9 percent A3 facility, and Microsoft at 67 percent of 2025 revenue; Nebius, Lambda, Crusoe, Oracle's $664B RPO and NVIDIA's $105B of guarantees; who books servers over 5, 5.5 or 6 years and what Burry's $176B means; and an own-versus-rent break-even calculator.

13 min
Oct 5, 2026

FinOps for AI in 2026: 98% Manage Token Spend, 3 in 4 Can't Prove the Value, GPUs Run at 5%, and FOCUS Gets a Token Column in 1.5

The AI cost ledger as of October 2026: State of FinOps 2026 (1,192 practitioners, 98 percent manage AI spend, up from 31 percent in 2024), the Tokenomics Foundation finding that three in four enterprises cannot prove AI outcomes to the CFO, a per-million-token price table for Anthropic, OpenAI, Google and DeepSeek with cache and batch multipliers, a 20-step agent loop at $1.58 uncached and $0.42 cached, the FOCUS 1.2 to 1.5 roadmap and who exports which version, LiteLLM and Cloudflare budgets, Cast AI's 5 percent GPU utilisation, and $0.0037 of model cost inside a $0.99 resolution.

13 min
Oct 5, 2026

DevOps Still Matters in 2026: AI Cut Delivery Stability 7.2%, Then Doubled Merged PRs and Added 91% to Review Time

Why DevOps is the big thing of the agent era: DORA 2024 found a 25% rise in AI adoption cost 1.5% throughput and 7.2% stability, DORA 2025 saw throughput turn positive while instability stayed up across nearly 5,000 respondents, and DORA's 2026 ROI model budgets a 15% three-month dip and a change failure rate rising from 5% to 6%; GitHub merged 518.7M PRs (+29%) and over 1M agent PRs in five months, Faros telemetry on 10,000 developers shows 98% more PRs and 91% longer reviews, METR found experienced developers 19% slower, and the Replit postmortem's fixes are 2015 DevOps controls.

13 min
Oct 5, 2026

Coding Agents in 2026: Cursor at $2B Then Sold to SpaceX, Cognition at $1B, 58% on Terminal-Bench, and the Only RCT Still Says Slower

The coding-agent market as the primary sources report it in October 2026: Cursor from $500M to $1B to $2B in nine months and then acquired by SpaceX, Cognition from $73M to a $1B run-rate at a $48B valuation, Claude Code past $500M, Lovable at $13.3B, nearly 140,000 organisations on Copilot; four re-pricings from requests to tokens; Terminal-Bench 4.0 topping out at 58.2 percent for $3,267 a run; METR's redesigned study at minus 4 to minus 18 percent against 1.4 to 2x self-reports; 45 percent insecure samples, 1.7x more issues per AI pull request, and curl's bug bounty closed.

14 min
Sep 9, 2026

Zero-Knowledge in 2026: Ethereum Blocks Proven in 3 Seconds for a Third of a Cent, a 52-Bit Security Gap, and Google Wallet Proving Your Age

Where zero-knowledge proofs actually stand: the Ethereum Foundation's real-time proving definition and the measured numbers on ethproofs (from 16 minutes and $1.69 to 3 seconds and $0.003 a block on consumer GPUs), why the security certification is the hard part (a 52-bit gap between the proven and claimed soundness of the hash used), the zkVM bugs fuzzers found this year, the L2 landscape at $43 billion with zero Stage 2 rollups, and the non-crypto uses shipping now: Google Wallet's ZK age proofs, the EU wallet's December deadline, zkML and zkTLS. Plus a proof you can generate on a laptop.

14 min