Updated
Updated · TechCrunch · Nov 6
AI Spending Grew 1.5% in August-September as Price Cuts Blunted Token Boom
Updated
Updated · TechCrunch · Nov 6

AI Spending Grew 1.5% in August-September as Price Cuts Blunted Token Boom

1 articles · Updated · TechCrunch · Nov 6

Summary

  • Ramp data showed AI spend nearly stalled in late summer, rising just 1.5% across August and September after a 42% month-on-month jump in July, even as usage volumes kept climbing.
  • OpenAI and Anthropic price cuts, enterprise discounts and cheaper rival models appear to be driving the gap: customers are consuming more tokens but paying less per workload.
  • The top 1% of firms — the heaviest AI users — slipped slightly below their summer peak of about $10,000 per employee per month, enough to drag on overall revenue growth despite gains among median and top-10% users.
  • October spending re-accelerated 8.9% from Sept. 23 to Oct. 23, but Ramp said stronger buyer power and more efficient AI use still challenge assumptions of sustained hypergrowth.
  • That slowdown is feeding investor doubts around model makers' revenue outlooks, with Anthropic's reported valuation falling to $1.2-$1.3 trillion from $2 trillion and OpenAI trimming its target to $1.25 trillion.

Insights

With a mere 1% of firms driving 80% of AI spending, what happens when these elite buyers stop scaling their budgets?
Could the rapid commoditization of AI tokens force tech giants to abandon usage-based billing entirely in favor of new monetization models?
As smart routers slash AI costs by up to 98%, are the mega-valuations of frontier model providers facing an imminent collapse?