AI Token Pricing Hit New Record Lows In a Competitive Landscape

IBL News | New York

AI token pricing hit new record lows last month in an increasingly competitive landscape. Compared to the high recorded earlier this summer, it represents a fall of more than half.

A key gauge of daily pricing, the LLM Token Expenditure Index, developed by AI firm Silicon Data, fell to 97 cents on Monday.

The recent drop can be bad news for the companies behind the models, such as OpenAI, Anthropic, and Google’s Gemini. The decrease is driven in part by the rise of open-source Chinese models like Moonshot’s Kimi K3.

In response, American leading companies are announcing price cuts.