Dossier
Silicon Data Token Expenditure Index
Coverage of Silicon Data Token Expenditure Index in the Nexus archive.
- Tokens are getting cheaper, but companies are spending even more on AI as a result, top economist warns
The cost of AI tokens has dropped over 90% since 2023, but corporate spending on large language models has doubled, driven by increased usage despite lower unit costs. Economists warn this reflects Jevons paradox, where efficiency gains lead to higher overall consumption, as companies automate more workflows and deploy AI extensively.