Cheaper Tokens, Costlier Answers – CloudTweaks
The price of an AI token has collapsed. The cost of getting finished work out of AI has not. The two are moving in opposite directions, and the first is hiding the second. A token is a rate card. A completed task, once an AI system plans, calls tools, checks its work and tries again, is a loop that can burn dozens of times more tokens than a single reply. Finance teams that celebrate the falling rate are watching the wrong number.
The token price really is falling
For a fixed level of capability, the decline is not in dispute. Asset manager Payden & Rygel calculated in May 2026 that the cost of a million tokens from models matching GPT-4’s level of capability fell more than 99.9 percent, from $60 at launch to $0.05 by January 2026. At the frontier, BenchLM’s Token Price Index put flagship model prices 84...
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