Cheaper AI tokens boost demand, a best-case for Jensen Huang
ai token prices are dropping, but demand is growing due to new applications and agents, which could keep hardware prices steady.
according to data from ornn, silicon data, and bloomberg as of august 2026, the ai market is experiencing a textbook jevons paradox. as ai token prices drop, demand is increasing due to the unlocking of new applications and ai agents. this growth in demand is happening at a rate that offsets the falling token prices, keeping h100 gpu rental prices steady or even climbing. the assumption underlying this dynamic is that ai usage will continue to grow rapidly enough to offset the falling token prices. if demand were to flatten, it could have a ripple effect throughout the hardware and chip supply chain.