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Business Insiderabout 13 hours ago
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OpenAI's chair predicts companies will stop worrying about AI tokens

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OpenAI chair Bret Taylor predicts that within a year, companies will stop worrying about AI token costs as the market matures and shifts to paying for outcomes. He compares the current AI market to the early internet, where costs will decrease over time.

OpenAI's chair predicts companies will stop worrying about AI tokens

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The Big Picture
OpenAI chairman Bret Taylor told CNBC that concerns over AI token costs will fade as the market matures, predicting that in a year, companies will no longer think about tokens. He believes the industry is moving toward paying for outcomes rather than token usage, similar to how early internet costs decreased. Taylor noted that token costs have prompted businesses to seek better ROI, but he expects other companies to manage tokens for their customers, citing examples like Ramp's token spend tool and legal startup Harvey. He compared the current AI market to the early days of the internet, when building a website was expensive, and called for entrepreneurs to develop solutions that simplify token management. Taylor also acknowledged that token costs are expected to decline as models become more efficient, but expressed skepticism about recent low-cost models like Moonshot's Kimi K3, saying the jury is still out on whether they are truly cheaper to use.
Why It Matters
As AI adoption scales, the industry is shifting from per-token pricing to outcome-based models, reducing friction for businesses. This mirrors the internet's evolution from costly infrastructure to commoditized services, potentially accelerating enterprise AI integration. If token concerns fade, CFOs may greenlight broader AI investments, reshaping how companies budget for and deploy AI tools.

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OpenAI chairman Bret Taylor
OpenAI chairman Bret Taylor
OpenAI chairman Bret Taylor.

Bloomberg/Getty Images

  • OpenAI chair Bret Taylor says he thinks AI token concerns will fade as the market matures.
  • AI token costs have prompted businesses to seek better returns on investment.
  • "I believe where the world is going is paying for outcomes," Taylor told CNBC.

AI tokens are on the minds of many chief financial officers. The chairman of OpenAI predicts that in a year, they won't be thinking about them at all.

Bret Taylor, who is the founder of the AI startup Sierra alongside leading OpenAI's board, said that a lot of the "problems" related to tokenomics stem from the AI market not yet reaching maturity.

Speaking on CNBC on Monday, Taylor said that over time, he expects other companies to "bear the burden of managing tokens."

Tokens are units of text that AI models process, and they're used to calculate AI usage and cost. Earlier this year, spiraling token costs prompted companies to rein in their AI spending and assess whether they were getting a return on investment.

"I believe where the world is going is paying for outcomes," Taylor said, echoing the view of other executives who are now prioritizing ROI.

Taylor compared today's AI market to the early days of the internet, when it cost substantially more to build a website.

"We're just in the early stages of the technology, and I think it's a call for entrepreneurs to develop solutions so businesses don't need to deal with this stuff," Taylor said.

He pointed to Ramp's recently unveiled token spend tool, as well as sector-specific AI companies like the legal startup Harvey that manage tokens for their customers instead.

"I think if you fast-forward 12 months from now, IT departments will be really sophisticated about the industrial applications of AI," Taylor said. "For your marketing department, you might have one thing. For your software engineers, another thing."

"So you just don't need to think about the word token at all," he added.

Token costs are widely expected to come down over time as AI models become more efficient. Kimi K3, a model released last week by the Chinese startup Moonshot, grabbed Silicon Valley's attention by rivaling the capabilities of powerful models from OpenAI and Anthropic at a lower cost.

Taylor said he's not fully convinced yet.

"'Is it cheaper to use' is the most important part for anyone considering it," Taylor said. "And I think the jury's out on that."

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