Falling Token Prices Reshape the Competitive Landscape

CodeByPoonam · x · 2026-07-15

Gary Marcus shared and commented on a viewpoint regarding token prices: an 80% price drop might be enough to "end" OpenAI and Anthropic. While he noted the claim might be an exaggeration, the underlying direction is correct.

The core argument quoted is that while everyone discusses token prices, the more critical question is why they keep getting cheaper. As AI systems become more coherent, they waste less compute to arrive at the same answer. Long-term competitive advantage may not belong to the company with the "most compute," but rather to the one that can "derive the most intelligence per watt."

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