Spending on AI tokens has risen sharply since May, growing between 122% and 160% even as token prices fell 67%, according to venture firm a16z, a sign that cheaper access is driving heavier use of AI models.
AI token market · a16z
AI token spending is surging even as prices fall
Spending on AI tokens has grown between 122% and 160% since May, while the price per token dropped 67%. Cheaper access is pulling in heavier use of AI models.
Spending growth vs. price change since May
122–160%
Token spending growth
Blocks show the reported range, top block = upper bound
−67%
Token price change
Three blocks = 67% of the scale used above
Columns are drawn to a common scale of roughly 1 block per 40 points of percentage change; they are illustrative of direction and relative size.
122%+
Lower bound of reported spending growth since May
160%
Upper bound of reported spending growth since May
−67%
Reported decline in token prices over the same period
Why it matters
Demand is outrunning price cuts, so total spending rises even as each token gets cheaper.
Consumption
Usage of AI models is expanding substantially.
Unit price
Providers are cutting the cost per token at a steep pace.
Margin pressure
Revenue can keep growing even as margins per token shrink.
What supports the trend
Spending growth of 122% to 160% since May
Token prices down 67% over the same period
Total spend rising faster than unit prices fall
What remains unclear
Exact time window beyond "since May"
Models and providers covered
How spending and price measures were calculated
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