Cheaper AI tokens are raising demand while H100 rental prices hold

Data from a16z shows token prices keep falling, yet H100 GPU rental prices are steady or rising. Demand is growing faster than unit costs drop.

Why it matters: This is a Jevons paradox: efficiency gains expand total consumption, which supports the chip-to-cloud investment chain. It also makes that chain dependent on demand continuing to grow, which sits awkwardly beside reports of consumer payment rates and revenue shortfalls at major labs.