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      Goldman Sachs Warns of Investment Risks Amid Falling AI Token Prices

      Goldman Sachs has issued a warning regarding the declining prices of AI model usage tokens, which could pose significant risks to investment growth in the sector. The bank's Delta One trading desk reported that the Silicon Data LLM Token Expenditure Index fell by 29% in August 2026, reaching a record low of $0.97 per million tokens. This decline represents a drop of more than 50% from its peak of approximately $2.05 in May 2026, raising concerns about the financial viability of AI infrastructure investments.

      Rich Privorotsky, head of Goldman’s Delta One desk, highlighted two main factors contributing to the decrease in per-token pricing: the rapid advancement of proprietary AI models and the increasing availability of competitive open-source alternatives. These developments have created a scenario where token prices could fall by 30% while usage only grows by 10%, potentially leading to a significant revenue shortfall for companies heavily invested in AI infrastructure.

      Major technology firms such as Meta, Microsoft, Amazon, and Alphabet are among those facing these challenges, having committed to unprecedented capital expenditure programs for AI infrastructure. The decline in return on invested capital for hyperscalers has already reached an all-time low, according to Goldman’s analysis. As open-source models continue to improve, the pressure on commercial providers to maintain pricing will likely intensify, further complicating the investment landscape for AI.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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