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AI token prices hit record low, pressuring OpenAI and Anthropic

Summary by Quartz
A key market benchmark fell to 97 cents per million tokens on Monday, less than half its peak from earlier this summer

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The price of tokens, the basic unit used by generative artificial intelligence (AI) models to process information and generate responses, has fallen to an all-time low. This decline is attributed to fierce price-cutting competition among major AI companies in response to the offensive of low-cost AI originating from China. According to CNBC on the 1st (local time), the 'Giant Language Model,' an AI token price index compiled by market research f…

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The prices of AI tokens have reached historically low levels due to increased competition and the rise of Chinese models with open weights the promise of colossal profits is shrinkingThe prices of AI tokens have reached historically low levels due to increased competition and reduced production costs. The rise of open-access Chinese models and strategic price reductions are putting deflationary pressure on the market. This dynamic benefits users.

The LLM Token Expenditure index, created by Silicon Data less than a year ago, fell to a minimum value of 97 cents

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Quartz broke the news in New York, United States on Tuesday, September 1, 2026.
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