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Cheap Chinese and open source LLMs could trigger trillion-dollar AI infrastructure 'reset'

Falling token costs could prompt reassessment of massive AI capital expenditure

By GPU Data Hub Desk · GPU Data Hub·Editorial standards·
Cheap Chinese and open source LLMs could trigger trillion-dollar AI infrastructure 'reset'

Investment bank Jefferies has warned that declining token costs driven by inexpensive Chinese and open-source models may force a major recalibration of AI infrastructure spending. The financial institution questioned whether commercial large language models will achieve profitability amid intense downward pressure on inference pricing.

Original source

This summary was written by the GPU Data Hub desk from reporting published by The Register on 13 Oct 2026, 16:30. Read the full article at the original publisher.

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