AI Token Prices Hit Record Lows, Dropping Over 50% Since May Peak

According to the LLM Token Expenditure Index by Silicon Data, the cost per million tokens fell to $0.97 on August 31, marking a record low and a 50% decline from the May peak of $2.05. Key drivers include the release of the open-source Kimi K3 model by Moonshot AI(月之暗面), OpenAI's price cuts for the ChatGPT-5.6 series, and the adoption of dynamic pricing by major providers. While lower costs benefit users, they pressure the revenue of developers like OpenAI, Anthropic, and Google. Analysts at Seez Group suggest that foundational model firms should focus on d