Update
AI Token Spending Jumps Despite Price Drops
A16z data shows that AI token spending has increased by 122% to 160% despite a 67% drop in token prices. The rise in spending is attributed to increased AI adoption, particularly by AI agents, which consume tokens at a higher rate than human users. The data, published on October 31, 2026, indicates that agent token usage has grown by nearly five times since February 2026, driven by the Jevons paradox where cheaper resources lead to increased consumption. However, GPU rental costs have also risen, creating a challenging environment for profitability.