Computational Arbitrage in AI Model Markets

ArXi:2603.22404v1 Announce Type: new Consider a market of competing model providers selling query access to models with varying costs and capabilities. Customers submit problem instances and are willing to pay up to a budget for a verifiable solution. An arbitrageur efficiently allocates inference budget across providers to undercut the market, thus creating a competitive offering with no model-development risk. In this work, we initiate the study of arbitrage in AI model markets, empirically nstrating the viability of arbitrage and illustrating its economic consequences.