Cheaper AI tokens are driving more demand, and that's Jensen Huang's best-case scenario
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. If that demand flattens, the chain from chip makers to cloud providers takes a hit. The article…
AI Summary & Key Takeaways
- 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
- If that demand flattens, the chain from chip makers to cloud providers takes a hit
Cheaper AI tokens are driving more demand, and that's Jensen Huang's best-case scenario
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