Biggest threat to the AI trade: per-million-token prices fell 27% in a month
lilyraynyc · x · 2026-08-25
The biggest threat to the AI trade is deteriorating prices. Revenue is price times quantity: quantities look fine—despite open-source and Chinese competition, OpenAI and Anthropic keep adding businesses and token usage. But average cost per million tokens fell 27% over the past month, and OpenAI cut frontier model prices another 20% this week. Model companies must now drive volume even faster as prices fall to support their valuations.
Related event: AI Trade's Biggest Threat: Token Prices Fall 27% in a Month(3 posts)→
More from Venture
- Game studios can sell privately hosted realistic games to AI labs as training environments — dejavucoder · 2026-10-15
- NYC invests $30M in NYU quantum lab for 15% revenue share and board seats — TuhinChakr · 2026-10-15
- SK Hynix drops 11% again, now below 3x FY2027 earnings as AI memory selloff deepens — JOBhakdi · 2026-10-15
- VC thesis 'Data at the Edge': cheap sensors plus AI are rebuilding the internet's data flywheel offline — rebeccakaden · 2026-10-15
- DeepVest launches PlanLab, linking 11 financial planning areas in one dynamic plan — PtrPomorski · 2026-10-15
- Want ChatGPT to mention you? Founders are hacking Reddit to get into AI answers — tibo_maker · 2026-10-15