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Token prices have fallen dramatically but enterprise AI bills are rising due to increased token consumption from agents and background inference, illustrating Jevons paradox.
Five Chinese AI labs cut inference token prices by up to 99% in a price war, making frontier inference nearly free and shifting the competitive advantage from models to distribution and tooling.
An analysis of declining token prices for AI models despite new releases like GLM 5.2 and Kimi 2.7, suggesting possible diminishing returns from expensive models.