AI & Tech
Chamath warns AI token costs doubling every 45 days with flat productivity gains
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"Right now, Our token costs are doubling every 45 days. And I was like, ugh. And he said, yeah. And I said, well, what is the downstream productivity? And he said, maybe 5% max."
Chamath Palihapitiya revealed his company's AI token spending is doubling every 45 days while productivity improvements remain around 5%, creating an unsustainable cost trajectory. His CTO explained the plateau occurs because models require exponentially more tokens for incremental improvements. Chamath questions how many companies will face this reckoning and whether enterprises can justify ROI when costs escalate without proportional returns.
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