Gavin Baker: Cheaper open-source tokens benefit AI infrastructure
soumitrashukla9 · x · 2026-08-25
Gavin Baker refutes the view that cheaper open-source tokens are a negative for AI infrastructure companies. He argues that generating tokens for equivalently sized models costs roughly the same compute (watts and wafers), whether open-source or frontier. The difference lies in where value accrues in the stack, not a risk to AI overall. He notes that OpenAI's price cuts are driving revenue acceleration, while Anthropic may be gating growth for an IPO.
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