The demand for LLM tokens will continue rising but it will never be a great business.
- The demand for LLM tokens will continue rising but it will never be a great business.
- As tokens get cheaper, it will be viable to apply them to even more things, and demand will continue to go up.
- We'll continue to discover better and better machines to wring more and more value out of tokens.
- Even as subsidies evaporate, the demand will continue to grow as the use of tokens becomes increasingly powerful.
- But even if the marginal price to consumers will be high, the margin that a token provider can extract will be small.
- That's because the frontier models are all of a similar quality and also you can swap models easily.
- Tokens only generate value at the time of use; you can switch to another provider without destroying the value of what you've already produced.