Citadel Securities: token price fell more than half but Azure AI token consumption is up ~4.5x
Effective access per dollar is actually worse, not better.
This is as a demonstration of why cheaper intelligence need not mean a smaller compute bill.
Falling token prices are being offset by more intensive usage and broader deployment.
What is good for adoption can simultaneously be challenging for model producers' pricing power.
Non-technical Wall Street analysts continue to be short the right tail on compute and inference demand. It’s at least an order of magnitude higher than they expect, yet the hyperscalers know this and it’s why they are investing over $1T in 2027 for datacenter buildouts.
Effective access per dollar is actually worse, not better.
This is as a demonstration of why cheaper intelligence need not mean a smaller compute bill.
Falling token prices are being offset by more intensive usage and broader deployment.
What is good for adoption can simultaneously be challenging for model producers' pricing power.
Non-technical Wall Street analysts continue to be short the right tail on compute and inference demand. It’s at least an order of magnitude higher than they expect, yet the hyperscalers know this and it’s why they are investing over $1T in 2027 for datacenter buildouts.