Fast, low-cost small AI models like gpt-5.6-luna could unlock a new wave of consumer AI startups

The article argues that small AI models have become fast, capable, and cheap enough to handle useful tasks like coding assistance, research, email search, and personalized news generation. The author says models such as gpt-5.6-luna and GLM 5.3 are changing the economics of AI apps by reducing inference costs from dollars to cents.

Lower model costs could revive the consumer internet playbook, where startups can attract users before needing heavy monetization. If small models keep improving, more products may shift from premium AI subscriptions toward mass-market AI experiences embedded in everyday apps.