Lemkin: High-value enterprise AI apps are insensitive to token pricing
Jason Lemkin · Why You Need a $1B Fund To Do Series A | SpaceX at $2TRN & Data Centers in Space | Groq's $20BN Deal · 20VC with Harry Stebbings · Mar 26, 2026 · at 13:50
Jason Lemkin, founder of SaaStr, discusses model switching costs and why price cuts will not motivate enterprises to move away from primary LLM providers.
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“There are so many applications like the ones I described that were not that sensitive to token costs. If you use 204 102,000 dollars, 10,000 dollars of tokens for a month for these, it just doesn't matter. And so there's the open router world where costs are super sensitive. But there are plenty of applications that will deliver epic value on these LLMs where it's not worth it. You want to reduce my token cost from 2000 dollars a month to 1500? I'm not, leave me alone.”
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