AI brief
Data from a16z shows AI token prices keep falling while H100 GPU rental prices hold steady or climb, indicating cheaper AI drives demand faster than costs drop.
Why it matters: If that demand flattens, the chain from chip makers to cloud providers is affected.
Written by AI from The Decoder's published text.
Source
“Data from a16z shows a Jevons paradox in the AI market: token prices keep falling, but H100 GPU rental prices hold steady or climb. Cheaper AI drives demand faster than costs drop.”
Reporting from a publisher outside the organisation being covered.
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