Should Sam Altman fear token compression?(edgee.ai)

6 pointsby Gillesray4 miesiące temu1 comments

Should Sam Altman fear token compression?

https://www.edgee.ai/blog/posts/2026-03-12-should-sam-altman-fear-token-compression-technology-or-embrace-it

1 comments

Gillesray4 miesiące temu

AI bills are exploding despite costs dropping 10x every 18 months because every saving gets reinvested into more usage.

BUT: - Today's prices are subsidized (OpenAI losing $14B in 2026, Anthropic burning $12B in one quarter, Cursor alleges that a $200/month Claude Code subscription could cost up to $5,000 in compute.) - When subsidies end, prices reverse into a 10x larger consumption base - That's the double squeeze nobody is modeling for Companies building token efficiency now won't feel it. The rest will. And Altman? Cheaper AI to run = more use cases justified = bigger market for frontier models.