Analysis-Cheaper AI is better: Soaring bills are reshaping how businesses choose

June 29 (Reuters) - Silicon Valley's powerful and pricey AI models have been a necessity for businesses looking to future-proof themselves. But now a growing number of tech CEOs are arguing that cheaper options would be crucial for their wider adoption.

Top executives such as Microsoft's Satya Nadella, Palo Alto Networks' Nikesh Arora ‌and Coinbase Global's Brian Armstrong have said smaller, cheaper models can handle a big share of corporate needs.

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This view is the result of a reassessment within companies ‌that until recently encouraged heavy use of AI tools, often treating rising consumption as a proxy for productivity, dubbed "tokenmaxxing". Now, those bills are starting to bite.

Prices of tokens - the units used to measure AI usage - are falling, but the ​cost of completing a task is rising as AI firms shift from flat subscriptions to usage-based pricing. That is leaving companies with unpredictable and often higher bills as usa

Fuente original: Yahoo Finance (https://finance.yahoo.com/news/analysis-cheaper-ai-better-soaring-101601387.html)