Algorithm 4.2, which defines the operation of matrix multiplication for square matrices, is clearly . Since there are many algorithms that use matrix multiplication, often on relatively large matrices, this can have a serious effect on the speed of the programs that use these algorithms. For this reason, many algorithms that use matrix multiplication use various tricks which take advantage of some particular attribute of the specific matrices used by that algorithm. (We'll see an example of one such trick in section 4.4.)
However, for many years it was assumed that general matrix multiplication was an intrinsically operation, so despite the benefits that a faster general multiplication algorithm would have, there was not a lot of research dedicated to finding one. However, in 1969 Strassen discovered an algorithm. This may seem like a small improvement (and in fact, it does not really translate into real savings unless the matrices are large), but it was an astonishing result that spurred a great deal of research in this area. To the best of my knowledge, however, nobody has yet proven what the big-O of the fastest possible general matrix multiplication algorithm is. Perhaps there are some useful and theoretically important discoveries still to be made.