AI token usage has grown 25-fold as mid-tier models close the gap on flagships

New data cited by Tom's Hardware shows token volume processed by frontier AI models has grown roughly 25-fold, even as mid-tier models now deliver about 90% of flagship-model capability at roughly one-sixth the cost. The report frames this as pushing AI developers toward a pricing reckoning, where cost efficiency matters as much as raw capability gains.

Why it matters: This tracks with the broader pattern this year of labs releasing cheaper, near-flagship models rather than only chasing bigger benchmarks. If mid-tier models keep closing the capability gap, pricing pressure will likely fall hardest on providers whose business model depends on charging a premium for flagship access.