According to Yonhap News, Silicon Data, a U.S. market intelligence firm, reported that the LLM Token Expenditure Index fell to 97 cents per million tokens on August 31, reaching its lowest level since its inception at the end of last year—a decline of more than 50% from its May peak of $2.05. Analysts attribute this price decline primarily to three factors: the release of the open-source model "Kimi K3" by Chinese AI company Moonshot AI, OpenAI’s July price reduction for its ChatGPT-5.6 series models, and the adoption of dynamic pricing by leading vendors. While lower token prices help reduce user costs, they exert downward pressure on revenues for model developers such as OpenAI, Anthropic, and Google. A lead investment officer at Seez Group noted that foundational model providers are most directly impacted and recommended shifting focus toward strengthening distribution channels, memory, and context capabilities to increase user switching costs and counter competition from open-source models.
AI Token Price Reaches Historical Low, Down Over 50% From May High
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Summary
The crypto price for the AI token fell to 97 cents per million tokens on August 31, hitting a record low since its launch late last year. Price analysis reveals a decline of more than 50% from its peak of $2.05 in May. Analysts cite factors such as Moonshot AI’s open-source model “Kimi K3,” OpenAI’s July price reduction for ChatGPT-5.6, and dynamic pricing by major vendors. Lower costs for users come at the expense of revenue for developers like OpenAI and Anthropic. Seez Group’s head of investments said foundational model companies are most impacted and should focus on distribution, memory, and context to enhance user retention.
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