a16z says token spending rose more than 120% despite a 67% price drop
a16z's Moses Sternstein examines rising token-spending estimates since May and higher GPU rents, while warning that the datasets capture only part of demand.
By Ryan Merket · Published
Primary source: Aligned News — AI Intelligence
Why it matters
If token prices keep falling while total spend climbs, AI budgets will be set by usage growth and GPU scarcity rather than list prices. That favors model and infrastructure providers who can control compute supply, and it leaves application founders exposed to bills that grow even as their unit costs improve.
Moses Sternstein has a tidy answer for anyone waiting for falling token prices to cut an AI bill. In a16z's Charts of the Week post dated October 30th, 2026, the firm wrote that average token prices have fallen 67% since May while token spend has risen more than 120%. The newsletter's own napkin math points the same way.…
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