Goldman Sachs reported that the Silicon Data LLM Token Expenditure Index, which measures the weighted average price per million tokens used in the market, fell 29% in August alone to $0.97, breaking below the $1 mark for the first time and accumulating a drop of over 50% from its May peak. Rich Privorotsky, head of Goldman Sachs' One-Delta trading desk, believes this shakes the "more tokens equal more revenue" capital expenditure logic that has underpinned AI sector valuations for the past two years.
Meanwhile, JPMorgan Chase data shows that OpenRouter platform's token usage increased by approximately 47% month-over-month in August, but dollar expenditure only grew by about 7%, revealing a "volume up, price down" divergence. The Goldman Sachs report suggests that intensifying competition and improved local inference capabilities are structurally eroding the "pay-per-token" business model, with credit markets already signaling caution as bonds of related cloud vendors have seen "repricing."
OpenAI stated on September 1 that its next-generation model, Astra, has met critical cybersecurity thresholds, and is seen as the only near-term catalyst that could potentially reverse the trend, but Goldman Sachs remains cautious.
Goldman Sachs: AI Token Price Falls Below $1 Mark in August, Shaking AI Capital Expenditure Logic
No AI analysis yet. Tap the "AI Analysis" button above to generate one now.
Disclaimer: This content reflects the author's personal views only and does not constitute investment advice.
24H Trending
-
1
US spot Bitcoin ETFs see $527M net inflows on Oct 19, led by BlackRock's IBIT
-
2
Fitch flags US sovereign rating downgrade risk as FY2026 deficit hits $1.99 trillion, net interest expense breaks record at $1.05 trillion.
-
3
BMO Capital Markets Appoints Rahim Bapoo to Lead Global Critical Minerals Strategy and Expand Florida Presence
-
4
Economists expect bond yields to remain elevated for an extended period, alongside stronger economic growth and eventual inflation relief, according to a Wall Street Journal survey.
-
5
Nscale, backed by NVIDIA, is reportedly in talks with Anthropic for a $45 billion cloud computing deal.
-
6
Saudi Arabia has postponed its major investor conference, originally scheduled for October 26, to 2027 due to escalating Houthi attacks.
-
7
Advantage Partners is preparing to launch Japan's first large-scale forestry fund as early as this spring, aiming to consolidate forest resources and generate returns through timber, biomass, and carbon credits.
-
8
Most U.S. stocks rose as AI credit concerns eased; market focus shifts to upcoming AI earnings reports.
-
9
Anthropic is AI trade's last big hope for a major IPO this year, with 75% odds on Kalshi despite Q3 revenue of $16.8B and valuation cut
-
10
New Zealand Q3 inflation seen easing to 3.8%, but Q4 acceleration is forecast to drive more rate hikes
Markets Today
Recommended Reading


