Friday, July 3, 2026

The end of being drunk on AI?

 


There is an interesting index on token expenditures called the Silicon Data LLM Expenditure Index that measures the price of tokenization for AI. It is showing a decline as users move to cheaper models. If the price of tokens increases, demand will respond. 

Companies are now monitoring token usage and prices and ensuring that employees don’t treat tokens as a free good. This is natural behavior on the part of firms, but it also means that revenue growth for AI providers will likely slow and fall short of market expectations. 

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