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'We need to see the pricing for AI come down': Palo Alto Networks CEO Nikesh Arora says AI is too expensive…

Palo Alto Networks CEO Nikesh Arora says 90% reduction in AI pricing is needed to drive widespread adoption, 20% reduction by next year
OpenAI's latest GPT-5.6 Sol model is 54% more efficient across agentic coding tasks
Shift to consumption-based models is making high costs even more pronounced

Palo Alto Networks CEO Nikesh Arora has warned that AI pricing is still too high for widespread enterprise adoption, arguing that it should be drastically cheaper.

Although model efficiency and performance have come a long way in recent years, he believes cost remains one of the biggest barriers for widespread adoption.

In a recent interview with CNBC, Arora laid out how he believes token prices need to fall by as much as 90%, however he acknowledges that the change is unlikely to happen immediately, instead welcoming a 20% price reduction over the next year or so.

Is AI pricing holding enterprises...

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