Soaring AI bills push businesses toward cheaper models

Industry Impact 4
โดย Reuters·Read original
Summary · why it matters

A growing number of tech CEOs say cheaper AI models are crucial for wider adoption as soaring and unpredictable bills reshape how businesses choose their tools. Top executives from Microsoft, Palo Alto Networks, and Coinbase Global have argued that smaller, cheaper models can handle a big share of corporate needs, a view driven by a reassessment after companies encouraged heavy AI use only to see costs surge. Prices of tokens are falling, but the cost of completing a task is rising as AI firms shift from flat subscriptions to usage-based pricing, leaving companies with unpredictable and often higher bills. Gartner estimates AI coding costs will surpass the average developer's salary by 2028, while a survey found three-quarters of executives see tech budgets rising this year, with nearly half projecting double-digit jumps. That has led businesses to embrace cheaper models and routing tools, with open-source tokens processed on OpenRouter jumping to 65% in June from 34% in January, benefiting open-source model makers such as China's DeepSeek. OpenAI is reportedly weighing significant price cuts, but any shift to cheaper models could hurt revenue growth as the labs prepare for potential IPOs.

Impact on stocks 3

Artificial Intelligence▲ · 2 stocks
Microsoft Corporation
MSFT
± MixedDemandrelevance

Microsoft CEO argues cheaper models are crucial for adoption, but the article does not specify impact on Microsoft's revenue.

Palo Alto Networks Inc
PANW
± MixedDemandrelevance

Palo Alto Networks CEO argues cheaper models are crucial for adoption, but no direct impact on Palo Alto's business.

Digital Finance & Tokenization▲ · 1 stocks
Coinbase Global Inc
COIN
± MixedDemandrelevance

Coinbase CEO argues cheaper models are crucial for adoption, but no direct impact on Coinbase's business.

Theme Impact 3

Off-coverage companies 2

OpenAIPrivate▼ Negative
Pricingrelevance

OpenAI is reportedly weighing significant price cuts, and shift to cheaper models could hurt revenue growth ahead of potential IPO.

OpenRouterPrivate▲ Positive
Demandrelevance

OpenRouter sees open-source token processing jump to 65% from 34%, benefiting from shift to cheaper models.

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