Everything on Unit Economics

LLM providers are shifting toward token-based pricing for heavy users to protect margins. While raw token sales may have positive gross margins (40-55%), the massive costs of training and research often result in overall net losses.

Impact: Companies will move away from flat-rate subscriptions toward usage-based pricing to prevent 'power users' from eroding profit margins.

— from AI Model Economics, GPU Markets, and Corporate Strategy · Doppelgänger Tech Talk· Apr 18, 2026