Consulting firm Silicon Data announced on Wednesday that inference prices for large language models (LLMs) fell from US$ 2 to US$ 1.2 per million tokens since the beginning of June. Amid competition from low-cost Chinese open-weight models, the reduction should broaden AI adoption and benefit the industry in the long term, analysts say.
Price index
The LLM Token Expenditure Index, which tracks frontier providers and open-weight platforms, recorded the decline in the period. According to the research, companies across the AI industry reduced prices in recent weeks.
Impact
In a post on social media platform X, Silicon Data said competition increased and prices fell, which is positive for users and AI agent companies and promotes broader and faster adoption. Analysts say American investors' fears about cheap Chinese models are unjustified, as global demand for AI systems tends to grow with lower costs.
