Falling AI Token Prices Fueling Surging Demand, Creating Jevons Paradox
Recent data reveals a classic Jevons paradox in the artificial intelligence market as plummeting token prices drive demand faster than costs decline, keeping GPU rental prices high. This surging consumption benefits hardware manufacturers like Nvidia, though any sudden flattening of demand could destabilize the entire supply chain from chipmakers to cloud providers.
Source: The Decoder