Cost concerns with AI
Cost per token is the WRONG metric to focus on. As businesses integrate generative AI into real workflows, they are facing rising costs due to "token explosion" in large language models (LLMs), where complex tasks require exponentially more tokens. Our analysts rated this article as essential because it challenges misconceptions about AI cost deflation and underscores the critical need for leaders to understand total cost of ownership—not just per-token pricing—as they scale AI solutions. Theo Browne, CEO of T3 Chat, has an excellent video explainer about LLM cost here.
That was an overview of this Wall Street journal article on costs
Here's their last question...
Which raises a thorny question about the state of the AI boom: How long can it last if the giants are competing with their own customers?
David
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David@DavidCutler.net
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