Palo Alto CEO Arora says AI pricing must fall 90% as token costs soar
Palo Alto Networks CEO Nikesh Arora said soaring token costs could keep businesses from adopting artificial intelligence at scale, arguing that AI pricing needs to fall by as much as 90% to enable sustainable enterprise-wide use. His comments add to growing industry debate over AI's cost structure.
Palo Alto Networks CEO Nikesh Arora said the soaring cost of running large language models is becoming a major obstacle to enterprise AI adoption. Speaking about the economics of artificial intelligence, Arora argued that current pricing structures are too high to support sustainable, company-wide deployment.
Arora said prices need to fall by as much as 90% for AI to become broadly viable across businesses, warning that many companies could otherwise delay their AI investment plans. The remarks add to an intensifying industry debate over the cost structure behind generative AI tools.
Industry analysts say growing competition among model providers could eventually push prices down, though surging demand for computing capacity may slow that decline. Arora's comments could also shape expectations for how enterprise AI spending evolves over coming quarters.
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