AI companies are now racing to the bottom — crashing token prices and competitive models push companies to cut costs

Tom's Hardware
Aug 3, 2026, 12:26 pm181 ptsTrendingTop
We've entered a new phase of the AI industry's development, with all the major players heavily cutting costs and boosting the capabilities of their entry-level models in order to compete with new models from China, like Moonshot's Kimi K3 and DeepSeek's V4 Flash. OpenAI did so most recently, cutting the price…

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