Good morning. Fed Chairman Kevin Warsh used his Jackson Hole speech on Friday to focus on inflation. But he also pointed to an unusual metric that could offer clues about whether AI is delivering the productivity gains businesses are betting on: token prices.
Tokens are the units used to measure the data AI models process, and many AI companies charge customers based on token consumption.
Warsh called AI a potential “new factor of production,” then asked whether customers will pay a premium for tokens from the most advanced models even as prices for older models fall toward marginal cost.
