
OpenAI chairman Bret Taylor told CNBC corporate leaders will stop worrying about AI token costs within a year as providers absorb complexity and shift to outcome-based pricing.
OpenAI chairman Bret Taylor predicts corporate leaders will stop worrying about AI token costs within 12 months. Speaking on CNBC Monday, Taylor said the market's current token-focused anxieties stem from immaturity and will fade as providers begin managing those costs for customers.
"I believe where the world is going is paying for outcomes," Taylor said. He compared the current AI market to early internet days, when building a website cost substantially more. The fix, he argued, is not for companies to negotiate better token rates but for AI vendors to absorb the complexity.
Tokens are the units of text AI models process and charge by. Earlier this year, rising token costs forced some companies to pull back on AI spending and question their return on investment. Taylor pointed to Ramp's new token spend tool and legal AI startup Harvey as examples of companies already handling token management for their clients.
"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."
Token prices are widely expected to decline as models get more efficient. Chinese startup Moonshot released its K3 model last week, rivaling OpenAI and Anthropic capabilities at a lower cost. Taylor said he is not sold yet.
"'Is it cheaper to use' is the most important part for anyone considering it," he said. "And I think the jury's out on that."
Drafted by a large language model from the source reporting linked above, then screened by automated publishing checks. It is not read by a journalist before publication. Some articles cite our Alpha Score. Verify prices and figures against the original source. Educational coverage, not personalized advice.