AI Token price hits a historic low, halving from the peak in May

According to a report by the Korean News Agency, the LLM Token Expenditure Index released by the American market information agency Silicon Data fell to 97 cents per million tokens on August 31, marking a historical low since the index was established at the end of last year, down over 50% from its peak in May ($2.05).

Analysts believe that the launch of the open-source model "Kimi K3" by Chinese AI companies, OpenAI's price reduction for the ChatGPT-5.6 series models in July, and the implementation of dynamic pricing mechanisms by leading manufacturers are the main driving factors behind this round of price decline. While the drop in token prices helps reduce user costs, it will create revenue pressure for model developers such as OpenAI, Anthropic, and Google.

The investment head of Seez Group pointed out that foundational model companies are the most directly impacted and suggested shifting towards strengthening distribution channels, memory, and contextual capabilities to increase user migration costs in response to the competitive erosion from open-source models.