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Put differently, 1/40 is not the same as 1x - 40x. I’d phrase as Reduced by 97.5% or 0.975x

There are two ways to express such ratios, and both are equally valid. (Though "x" is usually reserved for "40x" and "%" for "97.5%".)

probably just AI slop and using wrong semantics, they mean speedup ratio.

You're absolutely right!