AI Token Prices Drop 40% as Enterprise Spending Surges

Usage-weighted token prices for artificial intelligence have fallen approximately 40% since late June 2026. Despite these lower costs, enterprise investment in the technology has accelerated. Data from Ramp shows that AI spending per employee among the top 1% of firms increased nearly 50% month-over-month in July.

Frank Flight, head of macro strategy at Citadel Securities, attributes this trend to the Jevons Paradox, a phenomenon where falling costs drive higher overall consumption rather than reducing market demand. This increased adoption is further evidenced by a rebound in GPU rental markets from June lows.

Hyperscaler cloud revenues continue to absorb new capacity rapidly. This growth persists even as the market faces competition from lower-cost AI models originating in China.