They’re all moving to tokens based billing to stop the bleeding. The markets aren’t as willing to let them burn infinite cash on operating expenses anymore. A lot of the private investors see the writing on the walls, that these AI companies are not worth anywhere near the valuations, and propping them up to ensure further datacenter build out to keep Nvidia shares high is costing more than it’s worth.

A lot of the model providers are lining up for ipos to cash out their initial investors and dump the responsibility of the mess on the public markets. They have to jack their prices to pretty up their books if they want to cash out with an IPO though. The unlimited access for a flat monthly cost shtick was obviously never a viable business model. They’ve all been spending massively more on inference than they’ve been taking in subscriptions, and even with the changes to token based billing, they still will be.

Anthropic is claiming that they will have their first “profitable” month soon, but that’s actually just a magic trick of book keeping. They’re deferring some cost of compute for a few months, and accepting a bunch of pre payments from customersr. Basically pretending to have high revenue and lower cost by shifting when the payments are made. And then on top of that they’re jacking up prices and thus decreasing their demand with the shift to tokens.

Everyone is running around rearranging deck chairs on the datacenter titanic hoping they can keep their feet dry a little longer.