Updated
Updated · Business Insider · Jun 12
Nvidia Blackwell Cuts AI Token Costs 35-Fold as Providers Ready Price Slashes
Updated
Updated · Business Insider · Jun 12

Nvidia Blackwell Cuts AI Token Costs 35-Fold as Providers Ready Price Slashes

3 articles · Updated · Business Insider · Jun 12

Summary

  • AI token prices are poised to fall sharply later in 2026 as new models run on Nvidia Blackwell systems, with some model providers already cutting prices and others signaling cheaper offerings.
  • SemiAnalysis found Nvidia's GB300 NVL72 generated 6,000 tokens per second per GPU versus 90 on Hopper HGX 200, while cost per 1 million tokens dropped to 12 cents from $4.20.
  • Power efficiency also jumped: Blackwell produced 2.8 million tokens per second per megawatt versus 54,000 for Hopper, helping offset rising electricity costs in AI data centers.
  • Silicon Data's token spending index peaked near 2.06 in late May and fell to 1.75 by June 10, a move its CEO said could already signal broad token price declines.
  • Blackwell deployments, delayed by water-cooling and other data-center requirements, are now ramping in volume and should operate at scale in the second half, expanding cheap token supply.

Insights

If Nvidia turns AI tokens into a cheap commodity, where will the next trillion-dollar opportunity in the value chain emerge?
With AI token prices plummeting, why are major corporate AI budgets already being exhausted for the year?