tech
Why AI token prices are about to plummet
Nvidia's Blackwell systems could flood the market with cheap AI tokens, driving down costs and reshaping the economics of AI.
TL;DR
- New AI models launching later this year are expected to be more efficient, making AI tokens more abundant and cheaper.
- Nvidia's Blackwell GPUs are being installed in data centers, acting as supercomputers that enhance AI model training and efficiency.
- Compared to Nvidia's older Hopper system, Blackwell offers 65 times more token generation per second and 50 times more tokens per megawatt.
- The cost to generate one million tokens with Blackwell is drastically lower (12 cents) compared to Hopper ($4.20).
- AI model providers are poised to slash token prices because the new technology makes them significantly cheaper to produce.