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Cheaper AI Tokens Fuel Demand as Jevons' Paradox Plays Out in GPU Market
2026-10-11•SiTech AI Team

Cheaper AI Tokens Fuel Demand as Jevons' Paradox Plays Out in GPU Market

Falling token prices are not slowing AI adoption. Data through August 2026 shows H100 GPU rental costs holding steady or rising even as token prices drop, a pattern a16z calls a textbook Jevons paradox that could keep hardware scarce.