Ambati: Base token prices will fall while latest frontier models get pricier
Vamshi Ambati · 94% CAGR: What the Inference Boom means for your AI costs | Vamshi Ambati · Jun 9, 2026 · at 16:25
Vamshi Ambati (investor at Virama Ventures) contrasts software-driven inference cost reductions against the rising costs of cutting-edge reasoning models.
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“So there is a time in the next year and two where we'll start to see these directionally, yes all the token prices are going down. But as the models are maturing, we are starting to see that, you know, the opposite effect as well, where, you know, the cost is going up for the latest models, so.”
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