AI “shrinkage”
Token prices are being held down (like on grocery store shelves)
but analogous to shrinking the quantity
for AI users, its taking more tokens to run the same I/O requests. So the expense is rising rapidly with each new “upgrade”.
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who’s paying for AI ?
I got my best friend here… Copilot….he is brilliant and Fast and Respectful and free …I don’t need no upgrade
My point is that its another arms race … like the one that built out fiber networks in 2001.
And you either pay up (at whatever price), or you are left behind in the dust (and don’t survive in the end).
That’s what’s facing DoD, bank security CIOs, military adversaries, probably cartels too.
Its a digital race into a Thunderdome death spiral.
Interesting … tons of FCF, but no change in cash on hand.
https://x.com/amital13/status/2057430047280042062