The LLM Token Expenditure Index from Silicon Data has fallen below the symbolic 1 dollar per million tokens threshold, reaching 0.97 dollars, representing a decline of over 50 % from its summer peak. This deflation, driven by intensifying competition and the rise of open source models, does not impact all industry players equally: OpenAI, cushioned by its fixed-price subscriptions, appears less exposed than Anthropic, which relies more heavily on API revenue. Uber nevertheless illustrates that dramatic volume increases, multiplied by nearly 10 in just a few months, can offset falling unit prices. The key challenge for laboratories now lies in their ability to maintain sufficient margins to cover the massive investments committed to data centers and infrastructure.
Source: Read the original article
