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

Data from Ornn, Silicon Data, and Bloomberg shows AI token prices falling while H100 GPU rental prices hold steady or climb, a pattern a16z calls a textbook Jevons paradox. Cheaper tokens unlock agents and automation, driving volume growth that outpaces per-unit cost declines. The system depends on usage growing fast enough to offset falling prices; if demand flattens, chipmakers, memory suppliers, energy providers, and cloud companies could suffer. Markets showed sensitivity when US stocks dropped on reports about OpenAI's revenue.