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Why Your AI Bill Went Up Even Though Token Prices Are Falling
Despite the dramatic collapse in token inference costs, enterprises often face rising AI bills due to operational inefficiencies and unoptimized usage.
What: Jesse Zhang notes that while per-token costs have dropped from $60 per million in 2020 to mere pennies today, total enterprise AI expenditure continues to climb.
Why it matters: The cost of 'intelligence' is no longer dominated by model inference pricing but by the architectural bloat, excessive context usage, and lack of systematic optimization in modern AI workflows.
Original article
Token prices dropped significantly, yet many enterprises exceed AI budgets. A unit of inference cost $60 per million tokens in 2020, now just pennies. The discrepancy suggests inefficiencies despite lower token costs.
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