AnalysisOpinion / analysisApplications · Hardware & Compute · Agents & Tool Use1 source · Oct 11, 2026

Cheaper AI tokens are driving more demand, and that's Jensen Huang's best-case scenario

Data from a16z shows a Jevons paradox in the AI market: token prices keep falling, but H100 GPU rental prices hold steady or climb.

Proof1 independent outlet

Key points

  • Cheaper AI drives demand faster than costs drop.
  • If that demand flattens, the chain from chip makers to cloud providers takes a hit.
  • The article Cheaper AI tokens are driving more demand, and that's Jensen Huang's best-case scenario appeared first on The Decoder.

Sources (1)

Extractive summary: sentences quoted from the sources.

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