Tokenomics 2.0: The battle against AI costs (opens original article in a new tab)

Indian enterprises face soaring AI costs due to high token consumption, prompting a shift towards open-source models, inference optimization, and startups to manage expenses and improve efficiency.

• A large enterprise spent $1 million annually on AI token costs, highlighting rising expenses for AI usage.
• Indian companies are adopting open-source models and startups to optimize AI costs and reduce token consumption.
• The inference market is growing as enterprises seek efficient AI deployment solutions to manage costs and latency.
• Model routing and optimization techniques are enabling up to 70% savings in generative AI costs for enterprises.