Andrey Fradkin | Supply, Demand, and Usage of LLMs

We’re bringing people together to discuss the future of work and the digital economy.

Stanford Digital Economy Lab

On November 10, 2025, Andrey Fradkin, Principal Economist at Amazon, will stop by the lab for our seminar series.

Gates Computer Science, Room 119

Andrey Fradkin | The Emerging Market for Intelligence: The Supply, Demand, and Usage of LLMsWe document new facts about the supply and demand of LLMs as measured by API usage on Microsoft's Azure platform and on OpenRouter. We first document the rapid proliferation in the number of LLMs available, and the entry of inference providers such as DeepInfra, Fireworks, Cerebras, and Groq for open-source models.Second, we document trends in the pricing of LLMs, showing that usage-weighted prices remain relatively flat even as the price per unit of intelligence has fallen. We also document differences in pricing between open and closed-source models. Third, we consider the adoption of LLMs. There is substantial heterogeneity in the speed of adoption across industries, firm sizes, and models. We also document the degree of multi-homing by firms and apps across models.Finally, we study the response of demand to the entry of new and better models into the industry.Details:Time: 12:00 pm - 1:00 pm PTLocation: Gates Computer Science Building, Room 119, 353 Jane Stanford Way, CA 94503You can find additional event details, speaker bio, and information about upcoming seminars on our <a href="https://digitaleconomy.stanford.edu/events/" title="https://digitaleconomy.stanford.edu/event/alex-tamkin/" target="_blank" data-msys-clicktrack="0" rel="nofollow noopener noreferrer">website</a>.