Ara Kharazian put out an important piece last week as part of his ongoing Ramp Economics work.
Ara Kharazian put out an important piece last week as part of his ongoing Ramp Economics work. Cracks in the AI Thesis Part 2 calls out that AI token prices have fallen 41% from their peak in March - six months ago. Inserting his chart here:
He also has early data show slowing (possible declining) per-employee AI spending among the top 1% of consuming businesses. Cost-awareness and shifts to non-frontier/open models are contributors.
A good and expected trend for AI users, but concerning for financial markets with heavy bets on $T IPOs and data center economics. My seatbelt is fastened and tray table locked.
[Thanks Stefan Wolpers for his weekly curation of smart thinking.]