As with the other question about the empty algorithm, this question is a matter of definition rather than a matter of what is possible or impossible. It is certainly possible to think of a cost model for which an algorithm takes O(1/n) time. (That is not negative of course, but rather decreasing with larger input.) The algorithm can do something like sleep(1/n) as one of the other answers suggested. It is true that the cost model breaks down as n is sent to infinity, but n never is sent to infinity; every cost model breaks down eventually anyway. Saying that sleep(1/n) takes O(1/n) time could be very reasonable for an input size ranging from 1 byte to 1 gigabyte. That's a very wide range for any time complexity formula to be applicable.
On the other hand, the simplest, most standard definition of time complexity uses unit time steps. It is impossible for a positive, integer-valued function to have decreasing asymptotics; the smallest it can be is O(1).
